Oil prices edged lower in Asia Friday following lacklustre US economic data that has fuelled bearish sentiment about demand in the world’s top crude consumer.
US benchmark West Texas Intermediate for August delivery was down 23 cents to $105.61, while Brent crude eased 16 cents to $113.05 in afternoon trade.
The US Commerce Department said Thursday that consumer spending rose a mere 0.2% in May after flattening in April, raising questions about economic recovery in the world’s biggest economy.
“This has cast doubt on the growth outlook for the second quarter of this year, particularly after a wider-than-expected contraction in the first quarter,” Desmond Chua, market analyst at CMC Markets in Singapore, said, referring to weak GDP figures released Wednesday.
The report comes after the Energy Information Administration on Wednesday reported an unexpected build in US crude inventories last week.
