Oil prices remain steady as the market awaits OPEC’s decision and maintains a cautious stance.

The oil market was also influenced by a larger-than-expected rise in U.S. weekly jobless claims.

Ignacio Teson•Thursday, July 18, 2024•1 min read

Oil prices closed nearly flat on Thursday as the market cautiously awaited OPEC’s intentions, demand health, and a slowing U.S. economy.

In London, Brent crude for September delivery rose 0.03% to $85.11. In New York, West Texas Intermediate (WTI) for August delivery fell 0.04% to $82.82.

Prices remained balanced due to several factors. U.S. crude reserves hit their lowest in five years, as reported by the Energy Information Administration (EIA). However, this was offset by a 6.5% drop in fuel volumes released in the U.S. market last week.

USOIL

The oil market was also influenced by a larger-than-expected rise in U.S. weekly jobless claims, the highest since November 2021. This signals potential labor market deterioration, which could impact monetary policy.

From an investor’s perspective, the contraction in the labor market increases the likelihood of future rate cuts by the Fed, the central bank of the United States. The recent narrow range of prices reflects the lack of clarity regarding the Organization of the Petroleum Exporting Countries (OPEC).

The cartel and its allies plan to gradually reverse, starting in October, the 2.2 million barrels per day that some members of the bloc had unilaterally cut.

No changes are expected during the group’s meeting on August 1.

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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.