Crude oil prices fell on Monday, August 5, after the US stock market indices crashed due to rising fears of an economic recession. The oil price declines were limited to an extent as crude oil supply remains in question from the Libyan supply losses and increasing conflict in the Middle East.
Brent crude futures fell 1 per cent or 76 cents at $76.05 a barrel by 13:35 GMT. The oil prices are trading at the lowest since since January. The U.S. West Texas Intermediate crude fell 1.1 per cent or 77 cents at $72.75.
The U.S. posted the job data on Friday, which fueled the collapse around the asset classes. The market volatility was high following the U.S. job data, and the expectations of the investors did not match the data released.
“Crude oil exhibited significant price volatility, marking its fourth consecutive week of decline following disappointing U.S. job data. Friday’s U.S. Nonfarm Payrolls figures fell short of investor expectations, compounded by a dismal ISM Manufacturing PMI report, which heightened concerns about the health of the U.S. economy,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
