Brent crude fell 10 cents, or 0.1%, to $94.02 a barrel at 0047 GMT, while U.S. West Texas Intermediate crude was at $88.48 a barrel, down 6 cents.
“Crude oil fell further on demand concerns over a turbulent economic outlook,” said CMC Markets analyst Tina Teng. “If commodities aren’t valued in an impending economic downturn, they could be setting themselves up for an era of ‘stagflation’ when the unemployment rate starts to rise and inflation stays high.”
Recession concerns intensified following the Bank of England’s warning of a prolonged downturn after raising interest rates to the maximum since 1995.
Investors are focusing on the US jobs report to be released later today, which is expected to show nonfarm payrolls rose by 250,000 jobs last month, after increasing by 372,000 jobs in June.
Any sign of strength in the labor market could fuel fears of aggressive action by the Fed to curb inflation.
“There are signs that high prices have taken over demand for gasoline and distillates,” ANZ analysts said in a note.
U.S. gasoline demand fell about 7% year on year in July as China’s zero-COVID strategy pushes the recovery of the world’s second-largest economy further, they added.
Still, global crude oil markets remained firmly in reverse, where fast prices are higher than in the months ahead, indicating tight supplies.
Supply problems are expected to increase as winter approaches, with European Union sanctions banning maritime imports of Russian crude and petroleum products due to come into effect on December 5.
OPEC leaders Saudi Arabia and the United Arab Emirates are ready to provide a ‘significant increase’ in production if the world faces a severe supply crisis this winter, sources close to the company have said. of the thinking of the main Gulf exporters.
For September, OPEC+ is expected to raise its oil production target by 100,000 barrels per day. The rise is one of the smallest since OPEC quotas were introduced in 1982, according to OPEC data.
Brent crude fell 10 cents, or 0.1%, to $94.02 a barrel at 0047 GMT, while U.S. West Texas Intermediate crude was at $88.48 a barrel, down 6 cents.
“Crude oil fell further on demand concerns over a turbulent economic outlook,” said CMC Markets analyst Tina Teng. “If commodities aren’t valued in an impending economic downturn, they could be setting themselves up for an era of ‘stagflation’ when the unemployment rate starts to rise and inflation stays high.”
Recession concerns intensified following the Bank of England’s warning of a prolonged downturn after raising interest rates to the maximum since 1995.
Investors are focusing on the US jobs report to be released later today, which is expected to show nonfarm payrolls rose by 250,000 jobs last month, after increasing by 372,000 jobs in June.
Any sign of strength in the labor market could fuel fears of aggressive action by the Fed to curb inflation.
“There are signs that high prices have taken over demand for gasoline and distillates,” ANZ analysts said in a note.
U.S. gasoline demand fell about 7% year on year in July as China’s zero-COVID strategy pushes the recovery of the world’s second-largest economy further, they added.
Still, global crude oil markets remained firmly in reverse, where fast prices are higher than in the months ahead, indicating tight supplies.
Supply problems are expected to increase as winter approaches, with European Union sanctions banning maritime imports of Russian crude and petroleum products due to come into effect on December 5.
OPEC leaders Saudi Arabia and the United Arab Emirates are ready to provide a ‘significant increase’ in production if the world faces a severe supply crisis this winter, sources close to the company have said. of the thinking of the main Gulf exporters.
For September, OPEC+ is expected to raise its oil production target by 100,000 barrels per day. The rise is one of the smallest since OPEC quotas were introduced in 1982, according to OPEC data.
