Oil prices saw a modest decline on Friday following the release of U.S. economic indicators and growing expectations for increased production in the coming months.
On Friday morning, the price of Brent crude oil for December delivery fell by 0.73%, settling at $78.82 per barrel. Meanwhile, its American counterpart, West Texas Intermediate (WTI), for November delivery decreased by 0.71%, closing at $75.31 per barrel.
A higher-than-anticipated inflation rate in the United States has tempered expectations for an imminent interest rate cut by the Federal Reserve. “If inflation continues to rise, the Fed will need to shift its focus back to controlling it,” remarked an analyst at Swissquote, acknowledging that this could potentially contribute to a slowdown in the U.S. economy. “The prospect of an economic downturn in the U.S. is lowering demand expectations for oil, which is consequently pushing prices down,” she added.
