By Adedapo Adesanya
The prices of the major crude oil grades slipped on Friday as a strong Dollar and concerns over the economy of a top importer of the product, China, offset a tighter supply outlook.
Brent crude fell by 83 cents or 1 per cent to $84.28 a barrel and the US West Texas Intermediate (WTI) crude shrank by 63 cents or 0.8 per cent to $82.19 per barrel.
The US Dollar index climbed after stronger-than-expected data on the labour market and manufacturing earlier in the week.
A stronger US currency dampens demand for dollar-denominated oil from buyers holding other currencies.
Also, worries from China, the world’s second-largest economy and top oil importer, over a lack of concrete stimulus measures weighed on commodities.
Chinese officials acknowledged on Friday the sweeping list of economic goals re-emphasised at the end of a key Communist Party meeting this week contained “many complex contradictions”, pointing to a bumpy road ahead for policy implementation.
China’s economy grew by 4.7 per cent in the second quarter of 2024 official data showed, sparking concerns over its oil demand.
Meanwhile, a tech outage on Friday disrupted operations in multiple industries, with airlines halting flights, some broadcasters going off-air and everything from banking to healthcare to markets hit by system problems.
Meanwhile, two large oil tankers were on fire after colliding in waters near Singapore, the world’s biggest refuelling port, with two crew members, airlifted to hospital and others rescued from life rafts.
Prices also found some support in the previous two sessions after the US government reported a bigger-than-expected weekly decline in oil stockpiles.
The Organisation of the Petroleum Exporting Countries and its allies (OPEC+) producer group, are unlikely to recommend changing its output policy, including a plan to start unwinding one layer of oil supply cuts from October.
The OPEC+ Joint Ministerial Monitoring Committee (JMMC) is set to meet on August 1 to review the market.
Oil has risen in 2024 finding support from Middle East conflict and falling inventories. Concern about higher for longer interest rates and demand has limited gains this year.