Oil set to end week near multi-month lows

Market rattled by worries recession can hit fuel demand

NEW YORK:

Oil prices rose on Friday, recouping some of this week’s losses on strong US job growth data but remained on course to close the week near their lowest levels since February, rattled by worries a recession could hit fuel demand.

Brent crude rose $1.46, or 1.6%, to $95.58 a barrel by 1556 GMT. US West Texas Intermediate crude was up $1.24, or 1.4%, at $89.78.

US job growth unexpectedly accelerated in July as non-farm payrolls increased by 528,000 jobs, the largest gain since February, the US Labour Department reported.

“This is strong economic data that’s supporting the oil market rise today,” said Bob Yawger, director of energy futures at Mizuho.

During the session, both benchmarks hit lows last seen before Russia’s Feb 24 invasion of Ukraine. Brent remained down about 13% since last Friday’s close with WTI nearly 9% lower.

Oil traders this week have fretted about inflation, economic growth and demand, but signs of tight supply kept a floor under prices.

Recession worries have intensified since the Bank of England’s warning on Thursday of a drawn-out downturn.

Published in The Express Tribune, August 6^th, 2022.

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