The oil prices They plummeted 2.5% this Friday, November 3 and were heading for a second weekly loss, due to less concern about supply due to the conflict in the Middle East, while the demand prospects for China, the main importer of crude oil in the world, remain uncertain.
Crude oil futures West Texas Intermediate (WTI) The United States lost 1.63 dollars or 2% to $80.84 a barrel. For his part, the Brent loses 1.73 dollars or 2% to $85.12 a barrel.
Both benchmarks gained more than $2 a barrel on Thursday, but were on track to lose more than 5% for the week.
Keys to the oil fall
The Chinese manufacturing activity it contracted unexpectedly in October. The official Purchasing Managers’ Index (PMI) fell from 50.2% to 49.5% in October, falling below the 50-point level that separates contraction from expansion in activity, U.S. data showed on Wednesday. National Statistics Office.
On Friday, a private sector survey showed that the Chinese services activity expanded at a slightly faster pace in Octoberbut sales grew at the slowest pace in 10 months and employment stagnated as business confidence declined.
In United States, The Labor Department report showed that 150,000 jobs were added to nonfarm payrolls in October, compared to expectations for an increase of 180,000, due in part to strikes by Detroit’s big three automakers.
Last month’s data was revised down to show an increase of 297,000, instead of 336,000, and the unemployment rate rose to 3.9% versus expectations for it to remain at 3.8%.
The numbers, which follow a series of mixed jobs data this week, reinforced the view that the Federal Reserve had reached the end of its rate hikes.
Traders’ bets that the Federal Reserve will keep interest rates steady in December rose to 90% from around 83%. earlier to the data, while assessing the possibility of a cut in May, compared to previous June expectations.
On Wednesday, the Fed held interest rates steady, while the Bank of England kept them at their highest level in 15 years. The decisions kept oil prices supported while some risk appetite returned to the markets.
Meanwhile, geopolitical concerns remained in the spotlight, as the forces Israelis surrounded Gaza City on Thursday -the main one in the Gaza Strip- in its assault on Hamas, its army reported, but the Palestinian militant group resisted its offensive with attacks from underground tunnels.
Regarding the offer, Top oil exporter Saudi Arabia is expected to confirm an extension of its voluntary oil production cut of 1 million barrels a day until Decemberaccording to analysts’ expectations.
Source: Ambito
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