Oil slips amid caution ahead of Fed remarks
UEPL exported around 2.7 million barrels of light crude oil/ condensate during calendar year 2022. photo: file
Oil prices slipped on Thursday, still under pressure from the previous day’s weak data from major economies, which had investors worried about the demand outlook ahead of a speech from US Federal Reserve Chair Jerome Powell.
Brent crude fell 18 cents, or 0.2%, to $83.03 a barrel by 1808 GMT. US West Texas Intermediate crude fell 16 cents, or 0.2%, to $78.73 a barrel. At their session low, both benchmarks were down by more than a dollar.
“Disappointing data and nerves that the Federal Reserve could reinforce a hawkish stance are weighing on oil,” said Fiona Cincotta, analyst at City Index.
On Wednesday, Japan reported shrinking factory activity for a third straight month in August. Euro zone business activity also declined more than expected and Britain’s economy looked set to shrink in the current quarter.
US business activity approached the stagnation point in August, with growth at its weakest since February. But data also showed labour market conditions remained tight despite the Fed’s aggressive interest rate hikes.
Published in The Express Tribune, August 25th, 2023.
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