OPEC+ countries, against the backdrop of rising prices, confirmed an agreement to reduce oil production.
Oil prices fell sharply on the night of Friday, August 2. The market was pressured by fresh signs of a weakening US economy, compounded by market pessimism about demand prospects fueled by evidence of slowing activity in economy in China. This was reported by Bloomberg news agency.
October futures for Brent fell in price on the London ICE Futures exchange by $2.46 (3.09%) to $77.06 a barrel. During the session, the contract price fell to $76.9 per barrel.
The price of September futures for WTI on the NYMEX exchange fell by $2.69 (3.53%), to $73.62 per barrel.
The US Department of Labor reported an increase in the country’s unemployment in July to the highest since October 2021, 4.3%. The rate of job growth in the US economy slowed to 114 thousand from 179 thousand in June.
The previous day, it was found that the index of business activity in the US industrial sector (ISM Manufacturing) fell in July to the lowest level since November 2023, 46.8 points from 48.5 points in the previous month.
Traders’ concerns about the demand outlook outweigh worries about rising tensions in the Middle East.
OPEC+, following a meeting on Thursday, August 1, confirmed the agreements on the volume of production cuts, and also announced its readiness, if necessary, to abandon the increase in production from October 2024.
Source: korrespondent
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