Oil prices drop as demand worries prevail
Jul 23, 2022
New York [US], July 23: Oil prices fell on Friday as traders continue to fret over the outlook for demand.
The West Texas Intermediate for September delivery lost 1.65 U.S. dollars, or 1.7 percent, to settle at 94.70 dollars a barrel on the New York Mercantile Exchange. Brent crude for September delivery decreased 66 cents, or 0.6 percent, to close at 103.20 dollars a barrel on the London ICE Futures Exchange.
The above market reactions came as newly released data showed a further loss of momentum in advanced economies, which was bearish for crude demand and prices.
The flash U.S. services purchasing managers' index (PMI) fell to a 26-month low of 47 in July, while the flash manufacturing PMI dropped to a 24-month low of 52.3, S&P Global Market Intelligence reported on Friday. Readings below 50 indicate contraction.
Meanwhile, the S&P Global flash eurozone manufacturing PMI dipped to a 25-month low of 49.6 in July.
The U.S. Energy Information Administration reported Wednesday that the nation's total motor gasoline inventories increased by 3.5 million barrels during the week ending July 15. The print was well above forecasts for a rise of 400,000 barrels, reflecting falling demand.
For the week, the U.S. crude standard edged up 0.1 percent and Brent rose 2 percent, based on the front-month contracts.
Source: Xinhua
