Oil Prices Plummet Amid Fears of Softening Demand
Oil prices took a hit on Thursday as concerns over softening demand overshadowed ongoing tensions in the Middle East. Brent crude futures fell 2% to $87.17 per barrel, while West Texas Intermediate (WTI) futures dropped 2.2% to $81.41 per barrel.
The decline came despite the continuing US-Iran conflict, which has been a key driver of oil price volatility in recent weeks. Instead, investors appear to be focusing on signs that demand for oil may be slowing down.
US stock futures moved higher alongside the oil drop, with the Dow Jones Industrial Average and S&P 500 futures both ticking up by 0.2%. The Nasdaq $NDAQ-100 futures also rose 0.1%.
The US Bureau of Labor Statistics is set to release its July producer price index on Friday at 8:30 a.m. ET, which could provide further insight into the state of the economy and oil demand.