WASHINGTON (dpa-AFX) - Oil prices fell in cautious trade Thursday on worries about demand against the backdrop of slowing U.S. growth.
The downside remained capped after data showed a much larger than expected drop in U.S. crude inventories in the week ended June 28th.
Data from the Energy Information Administration (EIA) showed crude oil inventories in the U.S. plunged by 12.2 million barrels last week, after climbing by 3.6 million barrels a week earlier. Economists had expected crude oil inventories to edge down by 0.2 million barrels.
Benchmark Brent crude futures dipped half a percent to $86.89 a barrel in European trade today, while WTI crude futures were down half a percent at 83.43. Activity was thinned by the U.S. Independence Day holiday.
Demand concerns returned to the fore after a slew of data indicated the U.S. economy is losing momentum.
Overnight data showed initial jobless claims rose last week, the U.S. services sector contracted in June at the fastest pace in four years and private-sector job creation slowed for a third straight month, with pay gains for both job stayers and job changers slowing.
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