Oil Prices Take a Tooth‑Brush‑Like Dip
After a fresh, upbeat start to the week, crude oil’s mood swings went in the opposite direction, slipping into the red and signaling a potential trough for both WTI and Brent.
Mark’s quick glance: the numbers
- WTI (West Texas Intermediate) slipped roughly 0.1% at about 7:30 a.m. GMT.
- Brent took a slightly smaller hit, dropping around 0.03%.
What’s feeding this mellow mood?
The fall kicked off right after we got a slightly softer-than-expected look at China’s services boom. Meanwhile, Middle East jitters seem to have taken a breather, because the U.S. is keeping a wary eye on potential escalations.
Diving into China’s services data
In January, the S&P Global Services Purchasing Managers’ Index (PMI) read 52.7 points—a quick pause in the four-month stretch of accelerating growth. Analysts had penciled in 53 points, so it felt a little “ouch.”
- The slowdown also came with a noticeable dip in new orders.
- Investor optimism slid to its lowest level in three months.
- Employment still added jobs for the second consecutive month.
- Inflationary headwinds eased, with input prices rising at the second slowest pace in 19 months.
Even so, China’s services sector seems to have that stubborn talent of staying afloat even in rough seas.
Global worries pile up
There’s a growing undercurrent of concern:
- The Federal Reserve might keep rates high longer than the market expects, especially after January’s robust labor market numbers.
- US officials, in the middle of an election year, are doubling down on fears the Middle East conflict could spiral, a sentiment echoed even by US media referencing targeted strikes against U.S. soldiers.
- All these jitters create additional pressure on oil markets, nudging prices downward.
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