Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2024 02 02T021128Z 1 LYNXMPEK1101W RTROPTP 4 GLOBAL OIL - Business Express

Oil falls as US jobs data dents hope for near-term rate cuts


Oil falls as US jobs data dents hope for near-term rate cuts

By Laila Kearney

NEW YORK (Reuters) -Oil prices fell by about 2% on Friday and were headed for weekly losses after U.S. jobs data shrank the odds of imminent interest rate cuts in the world’s largest economy, which could dampen crude demand.

Faltering growth in China and the possibility of some easing of tensions in the Middle East also reduced prices.

Brent crude futures were down $1.53, or 1.9%, at $77.17 a barrel by 11:12 a.m. EDT (1612 GMT) and U.S. West Texas Intermediate crude futures fell $1.72, or about 2.3%, to $72.10.

Both benchmarks were on track for a loss of about 8% on the week.

High interest rates, which tend to dampen economic growth and oil demand, in major economies like the United States and the euro zone appear to be here to stay in the near term.

Data on Friday showed U.S. employers added far more jobs in January than expected, reducing the chances of near-term Federal Reserve rate cuts. The dollar jumped against all major currencies as a result.

“Prices were chugging along little changed prior to the report, but a huge beat on jobs created is kicking the can down the road for interest rate cuts,” said Matt Smith, director of Commodity research at ClipperData.

Across the Atlantic, a European Central Bank policymaker on Friday also suggested it was too early to cut interest rates in the euro zone.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Meanwhile, concern over China’s economic recovery persisted, with the International Monetary Fund forecasting that the country’s economic growth would slow to 4.6% in 2024 and decline further in the medium to about 3.5% in 2028.

A weekly loss in oil prices was already in motion after unsubstantiated reports of a ceasefire between Israel and Hamas caused prices to settle more than 2% down on Thursday.

Mediators are awaiting a response from Hamas to a proposal drafted last week with Israeli and U.S. spy chiefs and passed on by Egypt and Qatar for the war’s first extended ceasefire.

A pause could ease political risk looming over Gulf and Red Sea shipping lanes, which are key for global energy flows.

On Thursday, sources said that the Organization of the Petroleum Exporting Countries and allies led by Russia, together known as OPEC+, had kept its output policy unchanged. The group will decide in March whether to extend the voluntary oil production cuts that are in place for the first quarter, the sources said.

OPEC+ has output cuts of 2.2 million barrels per day (bpd) in place for the first quarter, as announced in November.

“What has been already been made clear last year is that the reversal of those cuts will be gradual,” said UBS analyst Giovanni Staunovo, adding that the bank expects an extension into the second quarter.

(Reporting by Laila Kearney, Noah Browning, Natalie Grover, Emily Chow and Jeslyn LerhEditing by David Goodman, David Evans and Susan Fenton)

Recent Post: