WTI drops to near $76.50 due to negative sentiment surrounding the global economy
The post WTI drops to near $76.50 due to negative sentiment surrounding the global economy appeared on BitcoinEthereumNews.com.
WTI price extends its losing streak as global stock markets affect risk assets. China’s growth concerns have added further downward pressure on Oil prices. EIA US Crude Oil Stocks Change marked the fourth straight decline but failed to hold Oil prices. West Texas Intermediate (WTI) Oil price continues to decline for the sixth successive session, trading around $76.70 per barrel during the Asian hours on Thursday. Crude Oil prices are under pressure due to negative sentiment in global stock markets affecting risk assets. US stock indices have decreased as technology stocks suffered more losses, exacerbated by disappointing quarterly earnings from major US tech companies Tesla and Alphabet. Meanwhile, the Energy Information Administration (EIA) reported a decrease of 3.741 million barrels in US Crude Oil Stocks Change for the week ending July 19, marking the fourth straight decline, against the expected increase of 0.70 million barrels. Despite this reduction in US crude inventories, crude Oil prices are being pressured by weakening demand in China and the anticipation of a ceasefire in the Middle East. Sluggish economic activity in China, the largest crude importer, has added further downward pressure on Oil prices. China’s Q2 growth was 4.7%, the weakest increase since early 2023. Concerns about the weak Chinese economy were intensified by an unexpected rate cut from the People’s Bank of China (PBoC) on Monday. The PBoC reduced the one-year Medium-term Lending Facility (MLF) rate from 2.50% to 2.30% on Thursday. Additionally, the Bank of China, one of the world’s largest banks, announced a 10-20 basis points cut in time deposit rates. A surge of optimism surrounding potential ceasefire negotiations between Israel and Hamas has eased the threat of supply disruption, which weakens the prices of the black Gold. Israeli Prime Minister Benjamin Netanyahu has hinted that a ceasefire agreement, which could…
Filed under: News - @ July 25, 2024 5:12 am