Brent futures fell $1.63 on the day, or 2.2%, to US$71.06 a barrel, while WTI crude lost $1.48, or 2.1%, to US$67.67.
The crude oil futures fell on Friday after it was announced that employment in the United States increased less than expected in August, and closed the week with a sharp weekly loss as demand concerns outweighed OPEC+’s decision to delay a supply increase.
Brent crude futures fell $1.63 on the day, or 2.2%, to US$71.06 a barrel, while those of American West Texas Intermediate (WTI) crude lost US$1.48, or 2.1%, to US$67.67. Thus, Brent crude lost around 9% this week, while WTI fell around 8%.
US government data on Friday showed that Employment rose less than expected in Augustbut the drop in the unemployment rate to 4.2% suggested the labor market slowdown is orderly and unlikely to warrant a big interest rate cut by the Federal Reserve this month.
“The jobs report was a bit weak and hinted that the U.S. economy is in decline,” said Bob Yawger, chief executive of Mizuho energy futures. “The Concerns over Chinese demand also continue to put pressure on prices of oil,” he added.
Falling oil reserves
Crude oil reserves fell in 6.9 million barrelsto 418.3 million barrelscompared to the expected decline of 993,000 barrels in a Reuters poll of analysts.
Signs that Libya’s rival factions may be closer to a deal to end the dispute that has crippled the country’s oil exports also pressured oil prices this week. Exports remain largely halted, but some cargoes from warehouses were allowed to flow.
Bank of America lowered its Brent price forecast for the second half of 2024 $75 a barrel from nearly $90 previouslyit said in a note on Friday, citing global inventory build-up, slower demand growth and excess OPEC+ production capacity.
Source: Ambito
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