New York West Texas Intermediate Crude Oil (WTI) ended down more than 3 percent on Tuesday (Aug 16) as investors worried about a global recession. After the US and China released weak economic data, oil prices were also pressured by the prospect of progress in the Iran nuclear deal negotiations. This could pave the way for Iran to return to its oil market.
- The WTI crude oil contract was delivered in September. It fell $2.88, or 3.2%, at $86.53 a barrel. This is the lowest closing level since Jan. 25.
- The Brent crude oil contract (BRENT) delivered in October. It fell $2.76, or 2.9%, at $92.34 a barrel. This is the lowest closing level since Feb. 10.
Weak economic data put pressure on oil markets last night. The US Department of Commerce said. Homebuilding starts fell 9.6 percent in July to 1.446 million units, the lowest level since February. 2021 and below analysts’ forecast of 1.540 million units from 1.599 million units in June. Home builders have been affected by rising mortgage interest rates. and the price of building materials
Phil Fine, Price Analyst Future said Investors React to Reports of US Homebuilding Startups Due to concerns about the economic slowdown and household energy consumption
China’s retail sales and industrial production grew lower than expected in July. While the People’s Bank of China announced a policy rate cut to support the economy. This is an operation that exceeds expectations. And it reflects that China’s central bank is concerned about the economic outlook in the country.
For news of progress on the Iran nuclear deal. A spokesman for the European Union (EU) said the EU had received a response from Iran about the EU’s proposal to resume the 2015 nuclear deal and that the EU was considering it. and consulting with the United States
Iran gave a response to the EU’s proposal on Monday. He called on the United States to show more flexibility in reinstating the nuclear deal.
Investors are keeping an eye on the weekly crude stocks report from the US Federal Energy Information Administration (EIA) today, while analysts in the S&P poll. Global predicts that U.S. crude inventories will drop 1.7 million barrels and gasoline stocks will also drop 1.7 million barrels.
By InfoQuest News Agency (17 Aug 65)
Tags: lifestyle, oil market, WTI oil, crude oil, oil prices