Support
Oil falls amid uncertainty surrounding demand
Markets await key Eurozone economic data
Oil prices have declined to $77 per barrel as markets remain wary of demand uncertainties
Decisions by the People's Bank of China have failed to bolster oil prices
The Euro is declining ahead of tomorrow's manufacturing and services sector data release
Oil prices saw significant declines in Tuesday's trading, nearing their lowest levels for July, amid continued expectations of oversupply and uncertainty over demand. Despite the People's Bank of China's shift towards monetary stimulus policies and an unexpected interest rate cut, these measures failed to provide sufficient support to the oil markets.
Brent crude futures for September delivery dropped to $82 per barrel, while West Texas Intermediate for the same contract fell to $78.01 per barrel.
Meanwhile, the Euro experienced notable declines against most currencies as markets awaited crucial economic data from the Eurozone, which could influence future decisions by the European Central Bank. The Euro fell against the Dollar during today's trading, sliding from around 1.0895 to currently trading near 1.0850. Tomorrow, markets are anticipating Purchasing Managers' Index (PMI) data for the manufacturing and services sectors in France, Germany, and the Eurozone.
De Guindos stressed the importance of having more confidence that inflation will reach ECB’s target of 2% by the end of 2025, calling it the “key question.” He acknowledged the high level of uncertainty, stating that ECB must be “prudent” when making decisions.
De Guindos predicted that inflation will remain “around current levels until the end of the year” and observed that all measures of underlying inflation are declining. He added, “The disinflation process will continue from the start of next year.”
