Due to a strong dollar and conflicting economic signals, investor mood was negatively impacted by oil prices on Friday, setting the market up for a second weekly fall, according to Reuters.
By 2:35 a.m. Saudi time, the price of Brent crude had dropped by 38 cents, or 0.5 percent, to $84.73 per barrel. The price of a barrel of US West Texas Intermediate crude futures dropped by 50 cents, or 0.6 percent.
Weekly, WTI was trading slightly higher after falling as much as 0.2 percent on Friday, and Brent crude was down 0.3 percent.
Following better-than-expected reports earlier in the week on the US labor market and manufacturing, the US dollar index increased for the second straight session. Demand from investors holding foreign currencies for oil denominated in dollars is reduced by a stronger dollar.
As for commodities, ANZ analysts noted in a report that the main oil importer, China, has not implemented any significant stimulus measures.
According to official figures, China’s economy expanded at a slower rate than anticipated in the second quarter (4.7 percent), raising questions about the nation’s oil consumption.
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