Oil Falls Amid a Gloomy Mood and Is Expected to Decline Weekly

Oil prices fell on Friday, marking second consecutive weekly decline due to mixed economic data & stronger dollar. Brent crude dropped to $84.50 per barrel, & U.S. WTI fell to $82.10 per barrel. Decline was influenced by strong U.S. labor data, slower growth in China, & Japan's inflation, which impacted market sentiment. Despite decrease in U.S. stockpiles, rising global stocks led to bearish trends, with OPEC+ unlikely to change output cuts.

Check MCX Crude Oil Rate Today Live

Check MCX Crude Oil Mini Rate Today Live

In-depth Highlight of Article 

Oil prices experienced downturn on Friday, positioning themselves for second weekly decline. Brent crude prices dropped by 51 cents, or 0.6%, to $84.50 per barrel, while U.S. West Texas Intermediate (WTI) crude futures fell by 72 cents, or 0.9%, to $82.10 per barrel.

U.S. dollar index saw its second consecutive session of growth following stronger-than-expected labor market & manufacturing data earlier in week. This stronger dollar reduced demand for dollar-denominated oil among investors using other currencies. 

Global Economy Growth

China's slower-than-expected economic growth rate of 4.7% in second quarter also raised concerns about country's oil demand. Absence of concrete stimulus measures from China's third plenum further weighed on commodity markets, as noted by ANZ analyst Daniel Hynes.

In Japan, core inflation increased in June, suggesting possibility of interest rate hike in significant oil market, adding to mixed economic signals affecting oil prices.

Despite larger-than-expected weekly decline in U.S. oil stockpiles providing some support earlier in week, analysts from consultancy firm FGE pointed out that broader inventory trends were more bearish than anticipated. Crude stocks have decreased at slower pace than usual for this time of year, & global fuel stocks saw increase last week.
Meanwhile, OPEC+ producer group is unlikely to recommend changing its output policy, including plans to start unwinding one layer of oil output cuts from October, according to sources.

Conclusion 

Article highlights complex interplay of factors affecting oil prices, including strong U.S. economic data, slower growth in China, rising inflation in Japan, & global stock trends. Despite some positive indicators such as declining U.S. stockpiles, overall sentiment remains bearish due to broader inventory trends & OPEC+'s likely decision to maintain current output cuts. This situation underscores volatility & sensitivity of oil market to global economic signals.