Oil prices slip after data points to cooling U.S. economy

By Katya Golubkova

TOKYO (Reuters) – Oil prices fell in early trade on Thursday after U.S. employment and business activity data came in weaker than expected, in signs the economy may be cooling in the world’s top oil consuming nation.

Brent crude futures were down 30 cents, or 0.34%, at $87.04 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 32 cents, or 0.38%, to $83.56 by 0030 GMT, with activity thinned by the U.S. Fourth of July holiday.

In the United States, data on Wednesday showed first-time applications for U.S. unemployment benefits increased last week, while the number of people on jobless rolls rose further to a 2-1/2-year high towards the end of June.

Separately, the ADP Employment report showed private payrolls increased by 150,000 jobs in June, below a consensus predicting an increase of 160,000, and after rising by 157,000 in May.

In a further sign of a loss of momentum in the economy, the ISM Non-Manufacturing index, a measure of U.S. services sector activity, fell to a four-year low of 48.8 in June, well below the 52.5 consensus, amid a sharp drop in orders.

However, weaker economic data may add to the Federal Reserve’s arguments to start cutting rates, analysts said, a move that would be supportive for the oil markets as lower rates could boost demand.

“The direction of recent data conforms to the Fed’s easing bias,” ANZ Research analysts said in a note. “A slowdown in growth momentum will support disinflationary impulses in coming months, paving the way for the Fed to cut rates.”

This post is originally published on INVESTING.

  • Related Posts

    Oil falls after Trump reverses Colombia sanctions threat

    By Anna Hirtenstein LONDON (Reuters) -Oil prices wavered on Monday after the U.S. and Colombia reached a deal on deportations, reducing immediate concern over oil supply disruptions but keeping traders…

    Dollar gains on tariffs fears; euro looks to ECB meeting

    Investing.com – The US dollar slipped lower Monday, rebounding after recent losses as attention returned to the potential for trade tariffs from the Trump administration at the start of a…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Qtum Price Forecast & Predictions for 2025, 2026, 2027–2030, and Beyond

    • May 8, 2025
    Qtum Price Forecast & Predictions for 2025, 2026, 2027–2030, and Beyond

    Pound Under Pressure Amid Rate Cut Expectations. Forecast as of 08.05.2025

    • May 8, 2025
    Pound Under Pressure Amid Rate Cut Expectations. Forecast as of 08.05.2025

    Pound Weakens Amid Rate Cut Expectations. Forecast as of 08.05.2025

    • May 8, 2025
    Pound Weakens Amid Rate Cut Expectations. Forecast as of 08.05.2025

    FCA Sees Progress in Smaller Firms; Are CFDs Coming Under the Radar of High-Risk Investments?

    • May 8, 2025
    FCA Sees Progress in Smaller Firms; Are CFDs Coming Under the Radar of High-Risk Investments?

    eToro Bets on Growth Ahead of IPO: Q1 Income Slips, but Reach Expands

    • May 8, 2025
    eToro Bets on Growth Ahead of IPO: Q1 Income Slips, but Reach Expands

    Spain CFD Trading Base Drops to 35,000 in Fourth Straight Annual Decline

    • May 8, 2025
    Spain CFD Trading Base Drops to 35,000 in Fourth Straight Annual Decline