Oil prices fell on Friday due to a strong dollar, mixed economic signals, and worries about China’s economy. Brent crude dropped by 41 cents to $84.70 a barrel, while U.S. West Texas Intermediate (WTI) crude fell by 49 cents to $82.33.
The U.S. dollar index rose for the second day following strong labor market and manufacturing data. A stronger dollar typically reduces demand for dollar-priced oil from buyers using other currencies.
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China’s economy grew slower than expected in the second quarter, raising concerns about oil demand. Analysts noted the lack of substantial stimulus measures from China and ongoing wildfires in Canada’s oil sands, affecting supply.
In other news, Japan’s core inflation increased in June, hinting at a possible interest rate hike. U.S. oil prices found support earlier in the week from a larger-than-expected decline in oil stockpiles, though broader inventory trends remain bearish.
According to sources, the OPEC+ group is not expected to change its output policy, including planned production increases starting in October.
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