What’s Affecting Oil Prices This Week? (Aug. 1, 2022)

Stratas Advisors expects oil prices will be under pressure for the upcoming week from the weakening economic outlook as the latest GDP numbers for the U.S. confirm the firm’s view that the U.S. economy has been slowing down.

John E. Paisie, Stratas Advisors
What’s Affecting Oil Prices This Week? (Aug. 1, 2022)

Stratas Advisors also doesn’t expect OPEC+ announce any significant changes in supply at their upcoming meeting on Aug. 3 considering the weakness in the economies of the U.S. and China, the firm said in it latest oil price forecast. (Source: Shutterstock.com)

The price of Brent crude ended the week at $103.97 after closing the previous week at $103.20. The price of WTI ended the week at $98.62 after closing the previous week $94.70.

The latest GDP numbers for the U.S. confirm our view that the U.S. economy has been slowing down. The GDP data show that the GDP declined at an annual rate of 0.9% during the second quarter after declining at an annualized rate of 1.6% in the first quarter. Despite the economic slowdown, the U.S. Federal Reserve moved forward with the expected interest rate increase of 0.75%. Oil demand in the U.S. continues to be tepid.

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