Editor’s Choice, economic news 6:39am.2024-05-04
West Texas Crude (WTI) futures in New York closed lower on Friday (May 3), posting their biggest weekly decline in three months, as investors weighed the release of oil price data and the possible timing of Weak US Employment when the Federal Reserve (Fed) will cut interest rates.
The WTI crude oil contract will be delivered in June. it fell 84 cents, or 1.06%, to close at $78.11/barrel and was down 6.8% this week.
The Brent crude oil contract (BRENT) will be delivered in July. fell 71 cents, or 0.85%, to close at $82.96 a barrel. and fell more than 7% this week.
Investors worry that prolonged high interest rates will affect the growth of the US economy, the world’s largest oil consumer. After the Fed decided to freeze interest rates this week.
Data released on Friday indicated that employment expansion in the United States slowed more than expected in April. and the annual increase in wages has slowed. This has caused traders to speculate that the Fed will cut interest rates for the first time this year in September.
The US Department of Labor revealed that non-agricultural employment figures increased by only 175,000 jobs in April. This was below analysts’ expectations of 238,000 jobs The unemployment rate rose to 3.9%, which is higher than analysts’ expectations of 3.8%.
Meanwhile, average hourly wages for workers rose 3.9% year over year in April. Lower than the expected figure of 4.0% and compared monthly. The average hourly wage for workers rose 0.2%, missing the forecast of 0.3%.
The Fed kept interest rates steady this week and notes that inflation remains high, which could delay rate cuts. High interest rates will weigh on the economy and reduce demand for oil.
The geopolitical risk premium due to the Israel-Hamas war has decreased. This is because both sides are considering a temporary ceasefire and holding talks with international mediators.
OPEC+ will next meet on June 1, where they can continue voluntary cuts in oil production from June. If the demand for oil does not increase
By InfoQuest News Agency (04 May 2024)
Tags: WTI oil , crude oil , oil price
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