2024-07-29 22:31:47
Oil prices turned lower on Monday afternoon, with traders weighing political news from the US and the wildfire situation in Canada.
As reported by Day.Az, September Brent futures fell on the London ICE Futures exchange by $0.39 (0.47%), to $82.24 per barrel. August WTI futures by this time fell on the NYMEX exchange by $0.35 (0.44%), to $79.78 per barrel. The exchange circulation period of August WTI futures expires at the end of the session on Monday. More actively traded September contracts fell by $0.4 (0.51%), to $78.24 per barrel.
Over the past week, Brent has fallen 2.8% and WTI 2.5% amid weak data from China that has raised concerns about fuel demand in the world’s largest oil importer.
US President Joe Biden announced on July 21 that he would not seek re-election to the post and expressed support for Vice President Kamala Harris as the new Democratic presidential nominee.
Wildfires in Canada are threatening production of about 348,000 barrels a day, regulators in the Canadian province of Alberta said.
Meanwhile, expectations that the Federal Reserve will soon begin easing monetary policy could support oil prices, wrote Daniela Sabin Hawthorne, senior analyst at Capital.com.
“Data showing slowing inflation and a weakening labor market have raised the prospect of a rate cut in September, putting pressure on the dollar and U.S. Treasury yields,” she said. “Easing financial conditions will support the U.S. economy without letting inflation get out of control, which gives hope for improving oil demand.”
Data from oilfield services company Baker Hughes showed that the number of active oil rigs in the U.S. fell by one last week to 477, a new low since December 2021. The number of natural gas rigs, meanwhile, rose by three to 103, the highest since mid-May.
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