Markets

Oil prices trade sideways as demand fears linger, markets weigh key economic data

Oil prices trade sideways as demand fears linger markets weigh key economic data

Oil prices trade sideways as demand fears linger, markets weigh key economic data

KEY HIGHLIGHTS

  • U.S. manufacturing and services PMIs came in well below expectations
  • German manufacturing and services sectors slowed momentum
  • Supply concerns in the oil market linger
  • Gold due to fall for second straight week

Mumbai: Oil prices traded sideways on Friday after a brief uptick earlier in the session as the market juxtaposed a slowdown in fuel demand against supply uncertainty.

U.S. manufacturing and services PMIs came in well below expectations, while the German manufacturing and services sectors slowed their pace of expansion in June with a decline in exports and soaring inflation.

OPEC and allied producing countries including Russia will likely stick to a plan for accelerated oil output increases in August, sources told Reuters.

OPEC+ holds its next meeting on June 30, and will most likely focus on August output policies in the meeting.

This is said to help curb surging oil prices, and inflationary pressures as U.S. President Joe Biden is slated to visit Saudi Arabia and the Middle East.

Official weekly estimates for U.S. oil inventories that were scheduled to be released on Thursday would be delayed until next week due to “system issues”, according to the U.S. Energy Information Administration.

Gold prices set for second weekly decline as rate hike woes persist

Gold prices were flat on Friday, but on track to post their second straight weekly decline as investors weighed the U.S. Federal Reserve’s decision to hike interest rates to curb surging inflation.

U.S. Federal Reserve’s chairperson Jerome Powell hammered home the central bank’s ‘unconditional’ commitment to rein in inflation.

Policymakers raised interest rates by 75 basis points last week, while Powell signalled that another similar move was on the cards at the next meeting in July.

Source link

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button