U.S. crude oil prices dropped more than 1% on Friday, marking the third consecutive weekly decline as concerns over demand in China overshadowed positive economic growth in the United States. West Texas Intermediate (WTI) crude fell 3.7% for the week, while Brent crude decreased by 1.8%.
Despite the U.S. economy growing at a stronger-than-expected rate of 2.8% in the second quarter, concerns about China’s demand have weighed heavily on the oil market. According to customs data, China’s oil imports decreased by 10.7% year-over-year in June, with refined product imports falling by 32%. As the world’s largest crude oil importer, changes in China’s demand significantly impact global oil prices.
Here are the closing energy prices for Friday:
– West Texas Intermediate (WTI): September contract settled at $77.16 per barrel, down $1.12 or 1.43%. Year to date, U.S. oil has gained 7.7%.
– Brent Crude: September contract closed at $81.13 per barrel, down $1.24 or 1.51%. The global benchmark is up 5.3% year to date.
– RBOB Gasoline: August contract remained steady at $2.46 per gallon, with a year-to-date increase of 17%.
– Natural Gas: August contract closed at $2 per thousand cubic feet, down 3 cents or 1.71%. Year to date, natural gas prices have dropped by 20.2%.
The recent surprise rate cuts by the People’s Bank of China have further fueled concerns about the strength of China’s economy. The central bank’s unexpected interest rate reduction on Monday, followed by a cut in its medium-term lending facility rate on Thursday, has led to speculation about potential challenges in boosting economic activity in the world’s second-largest economy.
