Oil prices fall after data points to a cooling in the US economy

By Katya Golubkova

TOKYO (Reuters) – Oil prices fell in early trading on Thursday after data on U.S. employment and business activity were weaker than expected, in signs that the economy may be cooling in the near future. largest consumer of oil in the world.

Brent crude futures fell 30 cents, or 0.34%, to $87.04 per barrel, while West Texas Intermediate (WTI) crude futures fell 32 cents, or 0.38%, to $83. .56 at 00:30 GMT, with activity reduced by the 4th of July in the US. holiday.

In the United States, data released on Wednesday showed that first-time claims for unemployment benefits in the US rose last week, while the number of people unemployed rose further, reaching a two-and-a-half-year high in late June. .

Separately, the ADP Employment report showed that private payrolls increased by 150,000 jobs in June, below the consensus forecast for an increase of 160,000, and after an increase of 157,000 in May.

In another sign of the economy’s loss of momentum, the ISM Non-Manufacturing index, a measure of activity in the US services sector, fell to a four-year low of 48.8 in June, well below the consensus of 52.5 , in the midst of a sharp drop. on orders.

However, weaker economic data could bolster the Federal Reserve’s case to start cutting rates, analysts said, a move that would support oil markets as lower rates could boost demand.

“The direction of recent data is in line with the Fed’s easing bias,” analysts at ANZ Research said in a note. “A slowdown in growth dynamics will support disinflationary impulses in the coming months, paving the way for the Fed to cut rates.”

(Reporting by Katya Golubkova; Editing by Sonali Paul)