During the week, Brent accumulated a decrease of around 11% and WTI a loss of more than 8%.
Oil prices rose on Friday but posted their steepest weekly losses since March, after another partial lifting of Russia’s fuel export ban compounded fears about demand due to macroeconomic headwinds.
Brent futures closed up 51 cents, or 0.6%, at $84.58 a barrel. US West Texas Intermediate crude oil futures gained 48 cents, or 0.6%, to $82.79.
During the week, Brent accumulated a decrease of around 11% and WTI a loss of more than 8%, due to concerns that persistently high interest rates will slow global growth and hit fuel demand, even if Saudi Arabia and Russia reduce supplies, countries that have said they will continue supply cuts through the end of the year.
U.S. job growth rose by 336,000 in September according to the Labor Department, far exceeding economists’ forecasts for an increase of 170,000.
What can we expect for the price of oil
The view on the figures is mixed for oil prices. A robust US economy could boost confidence in oil demand in the short term, analysts said, but conversely, the data resulted in a stronger US dollar and higher bets on another interest rate hike in 2023.
A strong US dollar is usually negative for oil demand, as it makes the raw material more expensive for holders of other currencies.
“Today’s (employment) figure keeps alive the prospect of another interest rate hike and certainly supports the Fed’s argument about the need to keep them high for longer,” ING analysts said in a note.
Russia announced the lifting of its ban on diesel exports for supplies arriving at ports by pipeline, on the condition that companies sell at least 50% of their diesel production to the domestic market.
The price spread between diesel and Brent futures fell to the lowest level since July, at $23.59 a barrel, upon the news, but then rebounded to $25.84.
Source: Ambito
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