Oil set to end week lower on demand concerns, easing supply woes
Updates prices
By Shariq Khan
Aug 23 (Reuters) -Oil prices were little changed on Friday but on track to end the week lower, as weaker U.S. employment data raised concerns over demand, and renewed ceasefire talks in Gaza eased worries about supply disruptions.
Brent crude futures LCOc1 rose 16cents, or 0.2%, to $77.38 a barrel at 0642 GMT, while U.S. West Texas Intermediate (WTI) crude futures CLc1 inched up 15 cents to $73.16.Brent futures have fallenabout 3% so far this week, while WTI lost nearly 5%.
Both benchmarks hit their lowest since early January this week, after the U.S. government sharply lowered its estimate of jobs added by employers in the country this year through March.
That sparked concern about a potential recession in the U.S. hurting demand in the top oil consuming nation, but some analysts say that was an overreaction to the jobs revision.
"The recent slump was driven by concerns of a hard economic landing in the U.S. However, data showed the labour market is cooling gradually instead of rapidly slowing. This was supported by signs of robust demand in the U.S.," ANZ Research analysts said.
Recent data from China, the top oil importer, has pointed to a struggling economy and slowing oil demand from refiners there. A renewed push for a ceasefire in Gaza between Israel and Hamas also helped ease supply worries and weighed on oil prices.
U.S. and Israeli delegations started a new round of meetings in Cairo on Thursday to resolve differences over a truce proposal.
Some analysts saidoil prices couldfind support in the weeks ahead as global inventories have declined over the past two months.
"The market continues to muse over OPEC's next move. The producer group announced earlier this year that it plans to increase output in Q4. However, prices remain depressed. This could see these plans delayed in an effort to support prices," the ANZ analysts said.
Reporting by Shariq Khan in New York and Sudarshan Varadhan in Singapore; Editing by Shri Navaratnam, Tom Hogue and Kim Coghill
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.