Oil prices dip on demand concerns and poor economic data.
According to the Energy Information Administration, USA gasoline stocks added 1.5 million barrels last week, opposing analysts’ expectation of an 888,000-barrel drop.
International benchmarks for crude oil resumed its downward journey on Wednesday, 23 August 2023 played on by demand worries from a rise in US gasoline stocks and poor manufacturing data globally that overshadowed the steep drop in US crude inventories.
According to the Energy Information Administration, USA gasoline stocks added 1.5 million barrels last week, opposing analysts’ expectation of an 888,000-barrel drop. Meanwhile, US crude inventories recorded a drop of 6.1 million barrels against a prediction of a 2.8 million drop on strong refining activity and better exports.
On the other hand, manufacturing data gathered from various PMI surveys showcased a distressing picture of the state of global economies. Japan’s factory activity fell for the third consecutive month while the EU showed business activity had shrunk below expectations, especially in Germany. The UK’s economy is also expected to drop in the current quarter and US business activity remained stagnant in August with its poorest growth since February.
Brent crude ended the session down by 82 cents or 0.98% at $83.21/barrel.
US West Texas Intermediate dropped 75 cents or 0.9% at $78.89/barrel.