Oil contracts closed down on Thursday (30), with the release of worrying economic data in the United States raising fears about the American economic recovery.
The WTI oil contract for September closed at a drop of 3.27% at $ 39.92 a barrel on the New York Mercantile Exchange, closing below the $ 40 a barrel level for the first time in three weeks. Brent’s contract for the same month fell 1.85% at $ 42.94 a barrel at ICE in London.
The US GDP data for the second quarter indicated that the fall in activity was 32.9% compared to the same period last year, according to the preliminary data released earlier by the US Department of Commerce, indicating the biggest drop since the Great Depression of 1929.
Unemployment insurance data in the US is also a concern, indicating 1.434 million new orders in the week, marking an increase over the 1.422 million in the immediately previous week and the second consecutive week of the indicator’s rise, which may point to a stumbling block in the economic recovery American situation, which, in turn, would negatively affect the demand for the commodity.
“It may be that the oil markets are pricing a greater risk of the economic slowdown in the US and elsewhere due to COVID-19. It could also be that physical demand has already started to peak, ”Oanda analyst Jeffrey Halley wrote in a note to customers.