Investing.com - Crude oil futures were lower during European morning hours on Thursday, as investors were weary of pushing energy prices higher ahead of the release of data expected to show a deepening slowdown in Chinese economic growth.
Oil prices came under further pressure after the minutes of the Federal Reserve’s latest policy meeting disappointed expectations for further easing to boost growth in the U.S.
The U.S. and China are the world’s two largest oil consuming nations.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD85.06 a barrel during European morning trade, shedding 0.85%.
It earlier fell by as much as 0.95% to trade at a session low of USD85.02 a barrel.
Oil prices came under pressure after minutes of the Fed’s June policy-setting meeting released Wednesday revealed that only a few board members thought that more asset purchases would be necessary.
Several other officials indicated that more action could be warranted only if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Just four Fed officials mentioned more quantitative easing in their individual forecasts, two saying they supported more easing and two saying they would consider it.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
The Fed's minutes boosted the U.S. dollar. The euro dropped to a fresh two-year low against the greenback, while the dollar index hit its highest level since July 2010.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.
Meanwhile, market players were looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.
The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Fears over the global economic outlook intensified after official data Tuesday showed that Chinese exports and imports in June slowed from the previous month, as weakening global demand weighed.
Markets also remained jittery after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery fell 0.85% to trade at 99.39 a barrel, with the spread between the Brent and crude contracts standing at USD14.33.
London-traded Brent prices rallied to a three-week high of USD102.33 a barrel on July 5.
Brent prices have been well-supported in recent sessions following the launch of Western-led sanctions targeting Iranian oil exports on July 1.
Oil prices came under further pressure after the minutes of the Federal Reserve’s latest policy meeting disappointed expectations for further easing to boost growth in the U.S.
The U.S. and China are the world’s two largest oil consuming nations.
On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded at USD85.06 a barrel during European morning trade, shedding 0.85%.
It earlier fell by as much as 0.95% to trade at a session low of USD85.02 a barrel.
Oil prices came under pressure after minutes of the Fed’s June policy-setting meeting released Wednesday revealed that only a few board members thought that more asset purchases would be necessary.
Several other officials indicated that more action could be warranted only if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Just four Fed officials mentioned more quantitative easing in their individual forecasts, two saying they supported more easing and two saying they would consider it.
The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand.
The Fed's minutes boosted the U.S. dollar. The euro dropped to a fresh two-year low against the greenback, while the dollar index hit its highest level since July 2010.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.
Meanwhile, market players were looking ahead to Chinese second quarter growth figures due out on Friday, to gauge whether China is a heading towards a hard or a soft landing.
A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone.
The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
Fears over the global economic outlook intensified after official data Tuesday showed that Chinese exports and imports in June slowed from the previous month, as weakening global demand weighed.
Markets also remained jittery after Spanish Prime Minister Mariano Rajoy announced on Wednesday EUR65 billion of new austerity measures, in an effort to meet new budget-deficit targets agreed with euro zone partners.
Market analysts warned that the fresh austerity measures were likely to drag Spain’s economy deeper in to a recession.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for August delivery fell 0.85% to trade at 99.39 a barrel, with the spread between the Brent and crude contracts standing at USD14.33.
London-traded Brent prices rallied to a three-week high of USD102.33 a barrel on July 5.
Brent prices have been well-supported in recent sessions following the launch of Western-led sanctions targeting Iranian oil exports on July 1.