Crude oil prices retreated, sealing a weekly decline after previously posting four consecutive increases.
The prices of the Petroleum fell on Friday as investors weighed weak consumer confidence in the USA in the face of data supporting a cut in interest rates Federal Reserve (Fed) in September.
Thus, crude oil futures Brent, the one that uses as a reference Uruguay to calculate the Import Parity Prices (PPI), fell 37 cents, or 0.47%, to $85.03 a barrel, while U.S. crude oil prices fell 1.8% to $85.03 a barrel. West Texas Intermediate (WTI) fell 41 cents, or 0.5%, to $82.21 a barrel.
Brent crude oil lost more than 1% this week, after four consecutive increases, while WTI crude oil fell by a similar amount each week.
US consumer confidence dragged oil prices lower
A monthly survey of the University of Michigan showed that the consumer confidence US unemployment fell in July to its lowest level in eight months, although inflation expectations improved for the next year and beyond.
The US Department of Labor reported that the producer price index (PPI) rose 0.2% in June, slightly more than expected, due to higher service costs.
However, investors expect the Federal Reserve to start cutting rates in September. “The market is not afraid of the Fed right now,” he said. Phil Flynn, analyst at Price Futures Group.
Lower rates are expected to boost the economic growth, which could encourage the fuel consumption.
“The cooling of the figures of inflation “In the United States, this could support the idea that the Federal Reserve begins its process of easing monetary policy sooner rather than later,” he said. Yeap Jun Rong, IG market strategist.
Source: Ambito
