Oil prices on Friday, 20 August, fell to the lowest in the past month and a half levels. A new batch of negative makrostatistiki the U.S. has resulted in increasing concern among investors about the economic situation in the country and as a consequence, further changes in demand for oil. In addition, pressure on the market have had a reduction in raw material stock indexes and the strengthening of the dollar.
As a result of trading on Aug. 20 at the New York Mercantile Exchange price for the futures oil of mark WTI in September delivery fell 0.97 dollars - up to 73.46 dollars per barrel. Validity of the September contracts for this sort of Friday expired. The cost of the October futures fell by 0.95 dollars - up to 73.82 dollars per barrel. At the InterContinental Exchange in London, the October contract for Brent Crude oil prices have fallen by 1.04 dollars to close at a mark of 74.26 dollars per barrel.
Another makrostatistika for U.S. investors added reason for concern, pointing to the negative processes in the labor market and in the manufacturing sector of the country. According to the U.S. Department of Labor (US Department of Labor), for the week ended Aug. 14, the number of Americans who first applied for unemployment benefits, rose a further 12 thousand - 500 thousand (the forecast was at 478 thousand). Despite the fact that the numbers may partly reflect the fact that three weeks ago, the U.S. government extended the period of issuance of unemployment benefits, increase the primary thrust of applications is causing intense anxiety.
"The extension three weeks ago period, the issuance of unemployment benefits has coincided with a sharp increase in applications - analyst Capital Economics. - But while the news about increasing the number of appeals should be interpreted with caution, of course, this message should not be left completely unattended. Economic recovery is clearly slowing, and in the circumstances, we expect growth in the number of primary applications for benefits. "
Big disappointment for the market participants caused by the dynamics of business activity index, FRB Philadelphia. According to the organization in August, an indicator reflecting the activity in the manufacturing sector in the region, fell to minus 7.7 points versus 5.1 points a month earlier (forecast was 7 points). "The data on the U.S. economy are terrible - commented on Friday's macroeconomic situation experts Capital Economics. - Falling index of business activity to a minimum Philadelphia Fed over the past 13 months, the level indicates that the recovery in the industrial sector tottering on the brink. From the report it follows that probability of falling national activity index in the manufacturing sector (ISM) below the high 50 points.
Investors in the oil market reacted negatively to the new evidence of slowing U.S. economic growth, as it will inevitably lead to a decrease in demand for "black gold". "We have achieved recent lows due to poor statistics has regular on the U.S. - said the broker BNP Paribas Commodity Futures Inc. Tom Bentz. - Stocks are on a 20-year highs, as demand prospects are worsening. Prices are still high for the current fundamentals."
Additional pressure on crude oil quotes have had price declines in equity markets also suffered against the release of unfavorable makrostatistiki. The index of wide market S & P 500 fell 0.37%, the index of "blue chips" Dow Jones lost 0.56%, and only high-tech NASDAQ finished the day growth, adding 0.04%. Meanwhile in Europe, Germany's DAX index fell 1.15%, the British FTSE 100 - on 0,31%, the French CAC40 - on 1,3%.
