WASHINGTON (dpa-AFX) - Crude oil futures settled lower on Friday on concerns about the outlook for energy demand following a slew of interest rate hikes by central banks and prospects of further tightening raising concerns about economic growth.
Data showing a slowdown in economic activity in the U.S. and Europe in June added to the gloom.
The S&P Global US Composite PMI dropped to 53.0 in June 2023, down from 54.3 in the previous month, according to preliminary estimate. The latest reading signaled the slowest upturn in private sector output since March as factory production fell at the steepest rate since January.
The S&P Global US Manufacturing PMI fell to 46.3 in June 2023, pointing to the biggest contraction in the manufacturing sector since December, compared to 48.4 in May.
The S&P Global US Services PMI edged down to 54.1 in June 2023 from 54.9 in May and compared with market expectations of 54, preliminary estimates showed.
West Texas Intermediate Crude oil futures for August ended lower by $0.35 at $69.16 a barrel.
Brent crude futures were down $0.25 or 0.34% at $73.89 a barrel a little while ago.
'Oil prices are declining on fears that a European recession and delayed stimulus from China will spell trouble for the global growth outlook,' says Edward Moya, Senior Market Analyst at OANDA.
'Energy traders are worried that the Fed and friends might cripple economic growth in the second half of the year. The upcoming week contains Energy Institute global energy outlook that could become a lot more pessimistic,' he adds.
According to the data from Baker Hughes, the total rig count fell to 682 this week, 71 rigs below this time last year. The current count is 393 fewer rigs than the rig count at the beginning of 2019, prior to the pandemic, the data said.
The number of oil rigs declined by 6 this week to 546, while the number of gas rigs stayed the same, at 130.
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