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13/06/24
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Crude Prices Drop as Focus Is on Fed and US Economic Data
On Thursday, crude prices dropped slightly, pressured by increasing U.S. fuel and crude supplies and expectations of slow rate cuts by the Federal Reserve but supported by U.S. economic data that showed the labor market was easing and inflation slowing.
Brent crude futures were 18 cents, or 0.2% lower, at $82.42 per barrel. West Texas Intermediate (WTI) U.S. crude futures were 24 cents, or 0.3% lower, at $78.26 per barrel. In the previous session, both benchmarks had risen nearly 1%.
According to the U.S. Labor Department, the producer price index (PPI) for final demand last month fell by 0.2%. Economists had expected an increase of 0.1%. Other data showed weekly first-time jobless claims were higher than estimated for a ten-month high.
The Fed kept interest rates steady on Wednesday and extended the beginning of policy easing to as late as Dec.
Higher borrowing costs normally dampen economic growth and may limit the demand for oil.
Fed Chair Jerome Powell said in a press conference after the central bank’s policy meeting that inflation had dropped without major damage to the economy.
U.S. crude stockpiles last week increased more than anticipated, mainly driven by an increase in imports, while fuel inventories also rose more than expected.
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