On August 18th, oil prices are fluctuating amid a more significant-than-expected decline in crude oil inventories in the United States and lingering concerns about China’s economic situation.
With worries that China’s growth slowdown and a potentially hawkish stance from the Federal Reserve may lead to decreased fuel demand in the world’s two largest economies, market sentiment remains weak.
Furthermore, data from the Energy Information Administration showed that U.S. production reached a new three-year high last week, nearing the record level achieved before the COVID-19 outbreak in 2020.
By 05:25 Eastern Time, WTI futures were trading 0.34% higher at $79.65 per barrel, while Brent contracts rose by 0.34% to $83.73. Earlier, both contracts reached their lowest levels in the past two weeks.
These fluctuations in oil prices are influenced by a combination of factors, including supply and demand dynamics in the U.S. market, concerns about China’s economic growth, and the potential impact of monetary policy decisions. Investors and traders will be closely monitoring these developments to gauge the future direction of oil prices.