Crude oil closes in the red after U.S. economy shrinks for the second quarter in a row

Crude oil futures closed lower on Thursday (July 28) after reports that the U.S. economy contracted by two quarters. Technically, this means a recession, that might have a negative impact on oil demand.

  • WTI crude futures were down 84 cents, or 0.9%, at $96.42 a barrel.
  • BRENT crude futures were up 52 cents, or 0.5%, at $107.14 a barrel.

WTI crude oil futures fell after the U.S. Department of Commerce released its first estimate of second-quarter GDP. According to this, GDP contracted by 0.9% after falling by 1.6% in the first quarter, which plunged the United States into recession.

However, in the course of the day, the oil market gained momentum. According to the EIA report, U.S. crude oil inventories fell by 4.5 million barrels last week.

Gasoline stocks fell by 3.3 million barrels and refined oil stocks, including fuel oil and diesel, fell by 800,000 barrels.

In addition, oil prices were also supported by market tightness. Including the prediction that Europe will increasingly turn to crude oil following the Russian curtailment of gas supplies via the Nord Stream 1 pipeline

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Friday, July 29, 2022

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