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Oil falls short of economic uncertainties

LONDON (Budapest) – Oil prices fell slightly on Friday during European trading, in the still uncertain global economic environment, while a speech by US Central Bank chief Oomery Powell will follow closely.

Around 9:10 GMT (11:10 CET), Brent's North Sea barrel for October delivery was worth $ 59.80 in London, a mild 0.02% drop on Thursday. During the week, it gained 2.00%.

In New York, the US STI barrel traded at $ 55.28 for the same maturity, down 0.13% from the previous day. During the week, it gained 0.86%.

"Some people blame the end of summer for causing the oil problems, but the truth is the long-term concern for the global economy," said Steven Brennanok, an analyst at PVM Reports.

On Thursday, the IHS Markit company really released its PMI indices, giving an overview of the global economy.

The provisional production of PMI for the US in August was estimated at 49.9 points, against the 50.5 expected by analysts. When the PMI is greater than 50 points, it means that the activity is advancing while it is falling below this threshold.

The manufacturing sector consumes a lot of oil, so contraction in this sector will lead to a decline in demand for black gold.

In addition, investors are waiting at 2:00 pm GMT for the speech of Oomeer Powell, chairman of the US Federal Reserve (Fed), to speak at the Jackson Hall Symposium in the United States, a major international meeting of central bankers.

According to Sukrit Vijayakar, an analyst for Trifecta consultants, "the axxon hole speech is important for oil because if the Fed says it will adopt a more appropriate monetary policy, it will weigh on the dollar," while the dollar index, which measures the green fall against a basket of six major currencies fell on Thursday.

"The weaker US currency usually supports oil prices," he said.

LTT / ktr / alb

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