- Due to weak economic statistics from major economies, oil prices declined on Thursday.
- On Wednesday, manufacturing statistics from numerous PMI surveys portrayed a dismal picture.
- Britain’s economy appeared to contract in the most recent quarter, putting it at risk of entering a recession.
Due to weak economic statistics from major economies and as investors wait for hints on interest rates from U.S. Federal Reserve Chair Jerome Powell’s speech on Friday, oil prices declined on Thursday.
By 0619 GMT, West Texas Intermediate crude in the United States had decreased 24 cents, or 0.3%, to $78.65 per barrel, while Brent crude had decreased 19 cents, or 0.2%, to $83.02 per barrel.
US Fed chief’s speech
On Wednesday, manufacturing statistics from numerous purchasing managers’ index (PMI) surveys portrayed a dismal picture of the state of economies around the world, heightening fears about demand.
While business activity in the Eurozone, notably in Germany, decreased more than anticipated in August, Japan reported declining manufacturing activity for the third consecutive month.
Britain’s economy appeared to contract in the most recent quarter, putting it at risk of entering a recession. In August, U.S. corporate activity was growing at its slowest rate since February, approaching the point of standstill.
Officials from the Federal Reserve and decision-makers from the Bank of England, the European Central Bank, and the Bank of Japan are traveling to Jackson Hole, where discussions about raising interest rates for longer may predominate despite a drop in inflationary pressures.
Sugandha Sachdeva, executive director and chief strategist at Acme Investment Advisors, predicts that oil prices will continue to trade with a negative bias, with some rebound but testing lower levels of approximately $74 per barrel in the short term.
