Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Oil settles down on US jobs data

    Oil settles down on US jobs data

    May 5, 2024
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Oil trading.

    – Steepest weekly loss in 3 months
    – OPEC+ could extend supply cuts beyond June, sources say
    – US job growth weaker than expected in April
    – US drillers cut oil and gas rigs for second week in a row

    New York — Oil prices settled lower on Friday and posted their steepest weekly loss in three months as investors weighed weak U.S. jobs data and possible timing of a Federal Reserve interest rate cut.

    Brent crude futures for July settled 71 cents lower, or 0.85%, to $82.96 a barrel. U.S. West Texas Intermediate crude for June fell 84 cents, or 1.06%, to $78.11 a barrel.

    Investors were concerned that higher-for-longer borrowing costs would curb economic growth in the U.S., the world’s leading oil consumer, after the Federal Reserve decided this week to hold interest rates steady.

    For the week, Brent declined more than 7%, while WTI fell 6.8%.

    U.S. job growth slowed more than expected in April and the annual wage gain cooled, data showed on Friday, prompting traders to raise bets that the U.S. central bank will deliver its first interest rate cut this year in September.

    “The economy is slowing a little bit,” said Tim Snyder, economist at Matador Economics. “But (the data) gives a path forward for the Fed to have at least one rate cut this year,” he said.

    The Fed held rates steady this week and flagged high inflation readings that could delay rate cuts. Higher rates typically weigh on the economy and can reduce oil demand.

    The market is repricing the expected timing of possible rate cuts after the release of softer-than-expected monthly jobs data, said Giovanni Staunovo, an analyst at UBS.

    U.S. energy companies this week cut the number of oil and natural gas rigs operating for a second week in a row, to the lowest since January 2022, Baker Hughes (BKR.O), opens new tab said in its closely followed report on Friday.

    In a move that could spark a battle for the 107-year-old mining company. Glencore has not yet approached Anglo, one of the sources said.

    The oil and gas rig count, an early indicator of future output, fell by eight to 605 in the week to May 3, in the biggest weekly decline since September 2023. The number of oil rigs fell seven to 499 this week, in the biggest weekly drop since November 2023.

    Geopolitical risk premiums due to the Israel-Hamas war have faded as the two sides consider a temporary ceasefire and hold talks with international mediators.

    Further ahead, the next meeting of OPEC+ oil producers – members of the Organization of the Petroleum Exporting Countries and allies including Russia – is set for June 1.

    Three sources from the OPEC+ group said it could extend its voluntary oil output cuts beyond June if oil demand does not increase.

    Money managers cut their net long U.S. crude futures and options positions in the week to April 30, the U.S. Commodity Futures Trading Commission (CFTC) said.

    *Nicole Jao, Ahmad Ghaddar & Deep Kaushik Vakil & Sudarshan Varadhan; editing: Barbara Lewis, Mark Potter, Laila Kearney, Paul Simao, Emelia Sithole-Matarise & David Gregorio – Reuters

    Related News

    ‘Nigeria’s $5bn oil-backed loan from Aramco delayed by oil price drop’

    Seplat to establish office in Akwa Ibom, gets govt approval

    Military busts 27 illegal refineries in Rivers, Bayelsa, others

    Comments are closed.

    E-book
    Resilience Exhibition

    Latest News

    ADNOC Gas takes FID and awards $5b contracts for RGD project

    June 10, 2025

    ‘Nigeria’s $5bn oil-backed loan from Aramco delayed by oil price drop’

    June 10, 2025

    Shipping firms dodge $900m cost, as Nigeria hit by empty container glut

    June 10, 2025

    Seplat to establish office in Akwa Ibom, gets govt approval

    June 10, 2025

    Afreximbank reaffirms financial resilience and transparency

    June 10, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.