The oil price looks optimistic. What are the reasons?
Crude prices sag on firm oversupply concerns
On Friday, crude prices went down, suppressed by ongoing concerns as for oversupply notwithstanding a bigger-than-expected dip in American crude inventories.
Market participants were also monitoring the broad market impact of tensions between America and the United States.
Brent crude futures slid 0.58% being worth $51.60 a barrel.
In the USA, West Texas Intermediate crude futures descended 0.64% hitting $48.28 a barrel.
On Thursday, crude prices hit 2-1/2 month maximums, but rebounded to close down 1.5%, with American prices getting back below $50 per barrel amid everlasting oversupply worries.
According to official data, US crude inventories slumped abruptly by 6.5 million barrels by August 4 because refiners increased run rates to the highest value for 12 years because of strong demand.
However, doubts are still actual over whether enough oil would be consumed to tame a global glut after on Thursday OPEC told about another leap in the crude cartel's output, even though it increased outlook for crude demand in 2018.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!