Oil Price: volatility keeps it on a slippery pole
The oil prices are in decline again despite the larger-than-expected draw in US crude stocks this week. Although the production cuts announced by Saudi Arabia and Russia have been pushed up the prices of crude oil for obvious reasons, for two successive weeks the price of WTI has been below $80. As of Friday 25 August 2023, WTI and Brent recorded $79.83 and $84.48 respectively. Analysts attribute the fall in crude oil price to the stagnation of factory activities in China, Japan and of course, Europe. As for China, the Manufacturing Managers' PMI, the key indicator that reflects the manufacturing activities in the world's second largest economy, has been below 50% since April. In Japan, meanwhile, it has been reported shrinking manufacturing activity for the third straight month. In Eurozone, manufacturing activity is in decline and it is particularly worrying in Germany, the workhorse of the blok. As for Britain, the economy is estimated to be shrinking in the present
