Oil Prices Slide on Downturn, Poised for Weekly Loss

19 Jul 2024 , 10:22 AM

Oil prices dipped on Friday, indicating a second weekly decline, as mixed economic data weighed on investor optimism and boosted the dollar.

Brent crude prices slipped 51 cents, or 0.6%, to $84.50 per barrel. United States West Texas Intermediate crude futures slid 72 cents, or 0.9%, to $82.10 a barrel.

The US dollar index rose for the second day in a row, following stronger-than-expected news on the US job market and manufacturing earlier this week. A rising greenback reduces demand for dollar-denominated oil among investors holding other currencies.

China’s economy expanded at a slower-than-expected rate of 4.7% in the second quarter, raising concerns about the country’s oil needs.

In other economic news, Japan’s core inflation rate increased in June, paving the way for an interest rate hike in the world’s largest oil market.

Brent crude was expected to fall approximately 0.5% this week, while WTI fell about 0.1%.

Crude prices gained some support in the previous two sessions after the US government reported a larger-than-expected weekly drop in crude inventory.

However, researchers at consultancy firm FGE say broader inventory trends are more pessimistic than projected this month. They noticed that petroleum stocks had drawn at a slower than usual rate for this time of year.

Meanwhile, the OPEC+ producer group is unlikely to advocate modifying the group’s output policy, which includes a plan to begin undoing one layer of oil output restrictions in October, three sources told Reuters on Thursday.

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