Singapore, August 5 (FinanceFlashNews) – Oil prices declined on Monday morning, driven by concerns over a global economic slowdown. While heightened tensions in the Middle East raised some concerns about supply disruptions from the key region, these factors were not enough to prevent a significant price drop.
Last week, oil prices hit their lowest levels in eight months following a series of weak economic data from the United States, which fueled fears of a recession in the world’s largest economy. The prospect of a recession in the world’s top oil consumer is a bearish signal for future demand, although recent data on oil inventories suggests that strong summer travel demand has kept fuel consumption high.
However, concerns about a wider conflict in the Middle East, which could disrupt oil supplies from the oil-rich region, remained in play as Israel continued its offensive in Gaza.
Benchmark Prices
- WTI: The September contract for US West Texas Intermediate (WTI) crude oil was trading at $72.99 a barrel at 7:34 a.m. Singapore time, down 53 cents or 0.72% from the previous week’s close.
- Brent: The October contract for Brent crude fell 46 cents or 0.60% to $76.35 a barrel.
Conclusion
Oil prices are currently caught between two opposing forces: concerns about a slowing economy, which is pushing prices down, and geopolitical tensions, which are pushing prices up. The future direction of oil prices will depend on which of these factors prevails.
