Brent crude fell 0.6%, and WTI fell 1.7% on fears of falling demand

Crude oil futures closed lower on Friday (July 22) after coming under pressure from weak U.S. economic data on Friday. Weak economic data continues to cause concern that the U.S. could fall into recession. Meanwhile, the U.S. crude oil price fell below $ 100 / barrel.

  • WTI crude futures fell $1.65, or 1.7%, to $94.70 a barrel. However, for the week, WTI crude futures were up 0.1%.
  • BRENT crude oil futures fell 66 cents, or 0.6%, to $103.20 a barrel. This week, however, it has risen by 2%.

The oil markets were put under pressure by the publication of economic data pointing to a slowdown in the US economy. This will have a negative impact on the demand for crude oil.

S&P Global reported Friday that the preliminary composite purchasing managers’ index (PMI), which includes U.S. manufacturing and services, fell to 47.5 in July, the lowest level in 26 months from 52.3 in June.

The PMI index is below 50, indicating that the US business sector is contracting. This was the first contraction in more than two years, or since June 2020, under pressure from the contraction in the service sector.

Meanwhile, the manufacturing sector posted its first decline in more than two years, driven by a slowdown in new orders and employment, while business confidence hit its lowest level since September 2020.

The preliminary manufacturing PMI was 52.3, a 24-month low (June: 52.7), and the initial services PMI was 47.0, a 26-month low (June: 52.7).

The EIA said Wednesday that gasoline inventories rose by 3.5 million barrels in the week ended July 15, above analysts’ expectations of 400,000 barrels.

The Spot Market id Closed

Saturday, July 23, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.10

95.09

-1.26

-1.31%

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