Mumbai, 4 Jul (Commoditiescontrol): Crude oil prices declined in early Thursday trading following unexpectedly weak U.S. employment and business activity data, hinting at a potential cooling of the economy in the world's largest oil consumer.
Brent crude futures dipped by 30 cents, or 0.34%, to $87.04 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures dropped 32 cents, or 0.38%, to $83.56 per barrel, with trading volume reduced due to the U.S. Fourth of July holiday.
In the United States, recent data revealed an uptick in first-time applications for unemployment benefits last week, with the number of continuing jobless claims rising to a 2.5-year high by late June. Additionally, the ADP Employment report indicated that private payrolls increased by 150,000 jobs in June, falling short of the expected 160,000 jobs and below the 157,000 jobs added in May.
Compounding the signs of economic deceleration, the ISM Non-Manufacturing Index, which measures U.S. services sector activity, plummeted to a four-year low of 48.8 in June. This figure significantly missed the anticipated 52.5, driven by a steep decline in new orders.
Despite these economic indicators, analysts suggest that weaker data could bolster the Federal Reserve's case for cutting interest rates, a move that might support oil markets by potentially boosting demand.
(By Commoditiescontrol Bureau: 09820130172)
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