Oil pulled back from a recent rally on weak US economic data
On August 1, 2024, global crude oil prices retreated following their largest gain in more than nine months, driven by signs of a slowing US economy that countered concerns about potential supply disruptions from the ongoing conflict in the Middle East.
On August 1, 2024, global crude oil prices retreated following their largest gain in more than nine months, driven by signs of a slowing US economy that countered concerns about potential supply disruptions from the ongoing conflict in the Middle East.
- Brent crude futures closed $1.32, or 1.6%, lower at $79.52/barrel.
- WTI crude fell $1.60, or 2.1%, to $76.31/barrel.
The pullback came as markets shied away from risk assets with data showing US manufacturing activity shrinking the most in eight months, stoking fears that crude demand may weaken.
Despite the ongoing conflict in the Middle East, the market remained largely unaffected by supply fears as there have been no significant disruptions to oil supplies thus far. However, investors remain vigilant about potential threats to key oil shipping lanes.
Written by: Rochelle Nguyen