Contents
Crude oil prices saw a slight uptick on Friday. Attempting to recover from a tumultuous week of losses in what has been one of the most challenging periods for the oil market this year.
US Jobs Data Awaited by Markets
Investors were closely monitoring the release of September’s US jobs data, scheduled for later in the day. This awaited economic indicator provided some support to oil prices. Which recently dropped from the mid-$95 range of the previous month to trading near $80 per barrel.
Expert Opinion On Oil Prices
John Kilduff, a partner at the New York energy hedge fund Again Capital, commented on the situation, stating, “After the heavy move down this week, it won’t be unusual to see a modest recovery, although the overall momentum for oil remains bearish. Additionally, speculative bids are expected ahead of the jobs data release.”
US Non-Farm Payrolls Expectations
Economists on Wall Street, as tracked by Investing.com, anticipated the creation of approximately 170,000 new non-farm payrolls for the past week, compared to August’s figure of 187,000 Oil Prices. This report holds significance for the Federal Reserve, as it seeks guidance for its upcoming policy meeting in November, particularly concerning interest rates.
Read More: BofA Initiates Wingstop Coverage with 22% Upside Potential
Central Bank’s Focus on Inflation
The Federal Reserve has maintained its projections, suggesting a likely quarter-point interest rate hike in either November or December. However, Chairman Jerome Powell and fellow policymakers emphasize that their final decision will be heavily influenced by inflation and other economic data.
Oil Market Performance
In trading, New York-traded West Texas Intermediate (WTI) oil prices for November delivery inched up by 41 cents, or 0.5%, reaching $82.72 per barrel in Singapore trading at 09:48 Eastern US time.
For the week, the US crude benchmark witnessed a significant decline of 9%, marking its most substantial weekly loss since April, following a low of $82.16.
London-traded Brent crude for the most-active December contract showed a modest increase of 15 cents, or 0.2%, reaching $84.41.
However, the global crude benchmark endured a substantial weekly loss of over 11%. Thus, representing its sharpest decline since March, after reaching a low of $82.84 over the course of five weeks.
Factors Behind the Oil Price Sell-off
The recent sell-off in the oil price market was primarily driven by decreased fuel demand in the United States. After the conclusion of the peak summer driving season. Gasoline consumption hit its lowest seasonal level in 25 years, with US gasoline stockpiles increasing by 6.481 million barrels last week—the most significant weekly build since January 2022.
Additionally, concerns regarding the impact of rising US Treasury yields and a strengthening dollar on international demand for crude. Especially for buyers using other currencies, contributed to the decline in oil prices.
Do you need help in finding the best forex broker for your needs?
Click here: The Best Forex Broker Finder
