Oil Price - Aug 5
Posted: Mon Aug 05, 2024 11:15 am
At the time of this post, WTI was at $73.33/bbl, well off the low this morning.
Trading Economics
"WTI crude oil futures dropped below $72 per barrel on Monday, the lowest in six months, due to growing concerns of a recession in the US, the world's largest oil consumer. Despite geopolitical tensions in the Middle East, including reports of Israeli airstrikes hitting schools and resulting in casualties, the market focus remains on the weakening demand for oil. Recent data showed a significant slowdown in US job growth, an uptick in joblessness, and sluggish wage increases. Adding to the economic gloom, both the US and China saw a contraction in their manufacturing sectors, exacerbating fears of decreased oil consumption. The escalating tensions in the Middle East, particularly Iran's threats of retaliation following the assassinations of top Hamas and Hezbollah leaders, are also being watched."
MY TAKE: It will take a major recession to lower oil demand.
Trading Economics
"WTI crude oil futures dropped below $72 per barrel on Monday, the lowest in six months, due to growing concerns of a recession in the US, the world's largest oil consumer. Despite geopolitical tensions in the Middle East, including reports of Israeli airstrikes hitting schools and resulting in casualties, the market focus remains on the weakening demand for oil. Recent data showed a significant slowdown in US job growth, an uptick in joblessness, and sluggish wage increases. Adding to the economic gloom, both the US and China saw a contraction in their manufacturing sectors, exacerbating fears of decreased oil consumption. The escalating tensions in the Middle East, particularly Iran's threats of retaliation following the assassinations of top Hamas and Hezbollah leaders, are also being watched."
MY TAKE: It will take a major recession to lower oil demand.