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Oil prices fall as strong dollar, worries over China weigh on sentiment
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Oil prices fall as strong dollar, worries over China weigh on sentiment
Jul 19, 2024 12:39 AM

July 19 (Reuters) - Oil prices fell on Friday as a

strong dollar, mixed economic signals and concern over China's

economy weighed on investor sentiment.

Brent crude prices fell by 41 cents, or 0.5%, to

$84.70 a barrel by 0650 GMT. U.S. West Texas Intermediate crude

futures fell 49 cents, or 0.6%, to $82.33 a barrel.

For the week, Brent was down 0.3%, while WTI was trading

marginally higher.

The U.S. dollar index climbed for the second consecutive

session after stronger-than-expected data on the U.S. labour

market and manufacturing earlier in the week. A stronger

greenback dampens demand for dollar-denominated oil from buyers

holding other currencies.

A lack of concrete stimulus measures from top oil importer

China has also weighed on commodities overall, ANZ analysts said

in a note.

China's economy grew at a slower-than-expected 4.7% pace in

the second quarter, official data showed, sparking concerns

about the country's oil demand.

"Concerns over supply in the short term kept the losses

minimal," ANZ said, however, referring to worsening wildfires

threatening production in Canadian oil sands.

Elsewhere on the economic front, Japan's core inflation

perked up in June, leaving the door open for an interest rate

hike in the major oil market.

Oil prices found some support in the prior two sessions

after the U.S. government reported a bigger-than-expected weekly

decline in oil stockpiles.

Analysts at consultancy firm FGE, though, said broader

inventory trends look more bearish than expected this month.

They noted U.S. crude stocks have drawn at a slower-than-usual

pace for this time of the year and global fuel stocks rose last

week.

Meanwhile, the OPEC+ producer group is unlikely to recommend

changing the group's output policy, including a plan to start

unwinding one layer of oil output cuts from October, three

sources told Reuters on Thursday.

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