Aerial view of a crude oil tanker at an oil terminal off Waidiao Island, Zhoushan, Zhejiang, China, January 4, 2023.From China Daily, Reuters/file photo Acquisition of license rights
SINGAPORE, Aug 18 (Reuters) – Oil prices halted a seven-week winning streak on Friday as concerns about demand growth as China’s economy slows and the possibility of a prolonged increase in U.S. interest rates caused losses. It seemed like it would take
Key benchmarks were little changed on Friday, with US West Texas Intermediate (WTI) crude rising 10 cents (0.1%) to $80.49 a barrel, while Brent crude was flat at 0205 GMT1. It was $84.12 a barrel.
The US Federal Reserve Board (FRB) focused on controlling inflation amid the announcement of better-than-expected economic data, and the rise in crude oil prices had come to a halt.
The U.S. Labor Department reported on Thursday that the number of new Americans filing unemployment benefits fell last week, suggesting the Fed’s tightening policy to cool the economy could drag on as the labor market remains tight. It suggests.
The report follows similarly positive economic data earlier this week, including U.S. retail sales, all of which suggested the Fed may have to hold on to rate hikes for a longer period.
Investors worry that higher borrowing costs could hurt economic growth and ultimately reduce overall demand, including oil.
A set of recent economic data released by China, the world’s second-largest oil consumer, has fueled concerns by highlighting the country’s rapid loss of economic momentum since the second quarter. .
China’s booming economy has roiled global financial markets in recent months, and a property crisis has terrorized investors amid epidemic fears.
However, in July, China unusually reduced crude oil inventories, stockpiling crude oil inventories for the first time in 33 months.
Data released this week also showed U.S. crude inventories fell by nearly 6 million barrels last week on the back of strong exports and refinery capacity utilization. Weekly product supplies, a measure of demand, climbed to their highest level since December. .
Reporting by Sudarshan Varadhan Editing by Shri Navaratnam
Our criteria: Thomson Reuters Trust Principles.