Brent oil price hovers lower near $108 on weak US economic data, dollar
tomsoopThe price of Brent crude dropped back down to $108 a barrel in trading this afternoon following an unexpected drop in US retail sales and a spike in jobless claims have raised doubts over growth in the US and undermined expectations of higher global oil demand growth this year.
Latest Brent Oil Price
In London, Brent crude oil futures for April 2014 delivery was trading at $108.18 a barrel, 14:25 GMT today on the ICE Futures Exchange. The March futures contract for European Brent expired yesterday.
US Data
US retail sales fell unexpectedly in January and more Americans filed for jobless benefits last week, the latest signs the world’s biggest economy started the year on a softer footing as bad weather took its toll.
Meanwhile, the US dollar was pinned at three week lows against a basket of major currencies early on Friday after the disappointingly soft US data dealt a blow to the already struggling American dollar.
Drained Oil Inventories
However, the IEA (International Energy Agency) reported yesterday that stronger than expected demand has drained oil inventories to the lowest level since 2008, tightening the market and defying predictions of a glut, effectively propping up oil prices to some extent. A weaker dollar is also helping Brent crude stay well above the $100 level for now.
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Brent oil price hovers lower near $108 on weak US economic data, dollar
