Brent trading almost flat
Brent crude oil prices are trading almost flat on Thursday, remaining close to the six-month lows touched during the previous session. Batches of disappointing economic data have been coming out from the world’s leading economies over the last few weeks, adding weight to the prospect of a global recession. In the meantime, on the supply side, US crude stocks fell during the second week of August, offering temporary support to the price of the barrel. However, looking at the bigger picture, the markets are likely to continue to factor-in the prospect of a decline in economic activity and the corresponding reduction in oil demand. Pressure is also lifting from the supply side, with output increases from major producers such as Saudi Arabia and Russia, with the latter finding new buyers in Asia. Against this background, there may be scope for further drops in the price of the barrel.
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