Oil price drops as US production picks up, UK retail sales decline, GBPUSD retreats [Video]
Oil price drops as US production picks up
After five straight sessions of increases, crude oil prices fell today as several energy companies restarted production.
It has been reported that following recent hurricanes in the region, some companies in the Gulf of Mexico in the United States have shut down operations.
Many believe this has contributed to the recent rise in energy prices, but if this supply channel reopens again, prices may start to stabilize.
WTI crude fell to an intraday low of $ 71.23 during today’s session, cementing a decline of around 1%.
This drop could worsen in the coming days, with a third of the region’s production still offline.
UK retail sales decline, GBPUSD retreats
In the UK, the FTSE 100 also fell as the GBPUSD traded lower following news of declining retail sales.
Retail sales fell 0.9% last month, while remaining above pre-pandemic levels, according to data from the Office for National Statistics.
Many believe the drop in retail sales is due to the fact that Britons are choosing to eat out by choosing restaurants, as opposed to shopping in supermarkets.
This was somewhat validated with figures showing that the clothing and footwear sector was the only area to see sales increase in August.
GBPUSD hit an intraday low of 1.3741, its lowest level since September 8, while the FTSE 100 fell below the 7000 level, closing the week down 0.91%.