Oil falls on US economic slowdown fears

Oil declined today, July 4, as investors studied signs of a slowdown in the US labor market and economic activity, which could weigh on future energy demand in the world’s largest economy.

Brent crude was trading down 0.54% at $86.87 per barrel at 08:18 am Makkah time. West Texas Intermediate (WTI) crude declined 0.64% to $83.34 per barrel.

Political and weather-related factors continue to support oil prices, but physical oil futures trading beyond September could become more subdued as hurricane risks partially dampen demand, Citigroup analysts said in a note to clients.

Data released on July 3 showed that unemployment claims in the US rose more than expected last week, and that the private sector added fewer jobs than expected in June.

This has raised investors' concerns about a slowdown in the US economy amid the current monetary tightening cycle.

However, oil received some support thanks to a decline in US crude oil inventories by more than 12 million barrels during the week ended June 28, according to data from the US Energy Information Administration.