Oil Closes the Week Lower Due to Weakening Consumer Confidence in the U.S.

Brent crude futures dropped 37 cents, or 0.47%, to $85.03 per barrel, while West Texas Intermediate oil fell 41 cents, or 0.5%, to $82.21.

Written by: Ignacio Teson • Friday, July 12, 2024 • 1 min read

• Last updated: Friday, July 12, 2024

Oil prices fell this Friday as investors weighed weak consumer confidence against data supporting a potential interest rate cut by the U.S. Federal Reserve in September.

Brent crude futures dropped 37 cents, or 0.47%, to $85.03 per barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 41 cents, or 0.5%, to $82.21 per barrel.

Brent futures lost over 1% this week after four weeks of gains, while WTI futures had a similar weekly decline.

A monthly survey from the University of Michigan showed that U.S. consumer confidence dropped to its lowest level in eight months in July, although inflation expectations improved for the next year and beyond.

USOIL

The U.S. Labor Department reported that the Producer Price Index (PPI) rose by 0.2% in June, slightly more than expected, due to higher service costs. Despite this, investors anticipate that the Fed will start cutting rates in September.

Lower interest rates are expected to boost economic growth, which could increase fuel consumption. Cooling inflation figures in the United States could support the notion that the Federal Reserve will begin easing its monetary policy sooner rather than later.

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ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.