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Around 4:30 am, a barrel of Brent from the North Sea for delivery in September lost 0.06% to 103.80 dollars.
The barrel of American West Texas Intermediate (WTI) for delivery the same month, fell by 0.16% to 96.20 dollars.
Disappointing economic indicators have reignited fears of recession, which have weighed on oil prices for several weeks.
Economic activity in the euro zone in particular contracted in July in the private sector, down for the first time since February 2021, under the effect of still high inflation, according to the composite PMI index published on Friday by S&P Global.
“Continued rate hikes by central banks around the world […] should also accelerate the erosion of demand,” said Han Tan, an analyst at Exinity.
The European Central Bank (ECB) decided on Thursday to raise interest rates for the first time in more than a decade, surprising with a bigger-than-expected hike to fight inflation.
But the trade-off between fighting rising prices and fears of recession remains complex, as rate hikes could be to the detriment of economic growth, which would ultimately weigh on demand for crude.
Demand from China, a major oil-consuming country, is also of concern due to lockdowns linked to the zero COVID-19 policy.
“False starts regarding the easing of shutdowns in China, coupled with new rounds of mass testing, have put pressure on oil prices,” said Stephen Brennock, analyst at PVM Energy.
“Despite this gloomy outlook, Brent prices are holding around the psychological threshold of $100 a barrel, with still tight market conditions expected to limit the drop in oil prices in the short term,” Han Tan said.
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Around 4:30 am, a barrel of Brent from the North Sea for delivery in September lost 0.06% to 103.80 dollars.
The barrel of American West Texas Intermediate (WTI) for delivery the same month, fell by 0.16% to 96.20 dollars.
Disappointing economic indicators have reignited fears of recession, which have weighed on oil prices for several weeks.
Economic activity in the euro zone in particular contracted in July in the private sector, down for the first time since February 2021, under the effect of still high inflation, according to the composite PMI index published on Friday by S&P Global.
“Continued rate hikes by central banks around the world […] should also accelerate the erosion of demand,” said Han Tan, an analyst at Exinity.
The European Central Bank (ECB) decided on Thursday to raise interest rates for the first time in more than a decade, surprising with a bigger-than-expected hike to fight inflation.
But the trade-off between fighting rising prices and fears of recession remains complex, as rate hikes could be to the detriment of economic growth, which would ultimately weigh on demand for crude.
Demand from China, a major oil-consuming country, is also of concern due to lockdowns linked to the zero COVID-19 policy.
“False starts regarding the easing of shutdowns in China, coupled with new rounds of mass testing, have put pressure on oil prices,” said Stephen Brennock, analyst at PVM Energy.
“Despite this gloomy outlook, Brent prices are holding around the psychological threshold of $100 a barrel, with still tight market conditions expected to limit the drop in oil prices in the short term,” Han Tan said.
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