Oil prices steadied after earlier declines on Thursday caused by disappointing economic data from key economies, with investors awaiting a speech by U.S. Federal Reserve Chair Jerome Powell on Friday for clues on interest rate moves.
Brent crude climbed 6 cents, or 0.1%, to $83.27 a barrel after dropping to $82.57 earlier in the session. U.S. West Texas Intermediate crude rose 4 cents, or 0.1%, to $78.93 a barrel, after falling to $78.22.
Japan reported shrinking factory activity for a third straight month in August. Euro zone business activity also declined more than expected, particularly in Germany. Britain’s economy looked set to shrink in the current quarter, leaving it in danger of falling into recession.
“China’s worsening growth momentum is the primary cause of the deterioration in global manufacturing,” BCA Research analysts said. “This is weighing on European countries where growth remains heavily exposed to Chinese demand, like Germany,” they added.
Meanwhile, Federal Reserve officials and policymakers from the European Central Bank, the Bank of England and the Bank of Japan head to Jackson Hole where higher-for-longer interest rate talk may dominate despite a dip in inflationary pressures.
