Oil Prices Decline Amid Signs of Cooling U.S. Economy

Oil Prices Decline Amid Signs of Cooling U.S. Economy

Oil prices declined following the release of weaker-than-expected employment and business activity data, suggesting a cooling economy in the United States. Brent crude futures dropped by 0.34%, while U.S. West Texas Intermediate (WTI) crude futures decreased by 32 cents, or 0.38%, to $83.56.

The ADP Employment report indicated that private payrolls increased by 150,000 jobs in June, falling short of the consensus expectation of 160,000. Additionally, the ISM Non-Manufacturing index showed a significant loss of momentum, dropping to a four-year low of 48.8, well below the anticipated 52.5. Despite the weaker economic data, it may support the Federal Reserve's rationale for potential rate cuts, which could subsequently boost oil demand.

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