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Oil Set to End Week Lower on Demand Concerns, Easing Supply Woes
Published by Uma Rajagopal
Posted on August 23, 2024
2 min readLast updated: January 29, 2026
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Published by Uma Rajagopal
Posted on August 23, 2024
2 min readLast updated: January 29, 2026
Add as preferred source on GoogleBy Shariq Khan
(Reuters) – Oil prices were little changed on Friday, on track to end the week lower, as downward revisions to U.S. employment data raised concerns over demand and renewed ceasefire talks in Gaza eased worries about supply disruptions.
Both Brent crude futures and U.S. West Texas Intermediate (WTI) crude futures were up 10 cents, or 0.1% each, at 0433 GMT. Brent futures, which has shed about 3% so far this week, was at $77.32 a barrel, and WTI, which has lost nearly 5%, was at $73.11.
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’s 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 say there are signs that oil could find support in the weeks ahead as global oil 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 and Tom Hogue)
Brent crude is a major trading classification of crude oil originating from the North Sea. It serves as a benchmark for oil prices globally and is used to price two-thirds of the world's crude oil.
West Texas Intermediate (WTI) is a grade of crude oil used as a benchmark in oil pricing. It is sourced from the U.S. and is known for its high quality and low sulfur content.
Oil futures are contracts to buy or sell a specific quantity of oil at a predetermined price on a specified date in the future. They are used by traders to hedge against price fluctuations.
The Organization of the Petroleum Exporting Countries (OPEC) is a group of oil-producing nations that coordinates and unifies the petroleum policies of its member countries to ensure stable oil markets.
An economic recession is a significant decline in economic activity across the economy that lasts for an extended period, typically visible in GDP, income, employment, manufacturing, and retail sales.
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