Oil prices rose on Friday but remained posted their steepest weekly losses since March, after another partial lifting of Russia’s fuel export ban compounded demand fears due to macroeconomic headwinds.
On Friday (October 6), Brent futures settled up 51 cents at $84.58 per barrel. US West Texas Intermediate crude futures settled up 48 cents at $82.79.
For the week, Brent posted a decline of about 11% and WTI recorded an over 8% drop, on worries that persistently high interest rates will slow global growth and hammer fuel demand, even if supplies are depressed by Saudi Arabia and Russia, who said they will continue supply cuts to year end.
US job growth rose by 336,000 in September according to Labor Department statistics, far exceeding economists’ forecasts of a 170,000 rise.
The sentiment of the statistics is mixed for oil prices. A robust US economy could buoy sentiment for near-term oil demand, analysts said, but conversely the statistics resulted in a stronger US dollar and increased bets on another interest rate hike in 2023.
A strong US dollar is typically negative for oil demand, making the commodity relatively more expensive for holders of other currencies.
Source: Reuters, New York