Oil prices settle down more than 2% after weak US jobs report
Oil prices fell on Friday as a weak U.S. jobs report dimmed the outlook for energy demand, while swelling supplies may grow further after OPEC and allied producers meet over the weekend.
Brent crude futures settled at $65.50 a barrel, down $1.49, or 2.22%. U.S. West Texas Intermediate crude finished at $61.87, down $1.61, or 2.54%.
On Wednesday, Reuters reported that eight OPEC+ producers will consider raising production further at a meeting on Sunday. U.S. crude inventories rose 2.4 million barrels last week, rather than falling as analysts expected.
U.S. nonfarm payrolls increased by only 22,000 jobs last month after rising by an upwardly revised 79,000 in July, the Labor Department's Bureau of Labor Statistics said in its closely watched employment report on Friday. Economists polled by Reuters had forecast payrolls rising by 75,000 positions after a previously reported 73,000 gain in July.
The initial August job count has tended to exhibit a weak bias, with revisions subsequently showing strength. Estimates ranged from no jobs added to 144,000 positions created.
Expectations are growing that OPEC+, the Organization of the Petroleum Exporting Countries and allies like Russia, will decide at Sunday's meeting to push more barrels into the market to regain market share.
Supply risks still support the market. U.S. President Donald Trump told European leaders on Thursday that Europe must stop buying Russian oil, a White House official said.
Any cuts to Russia's crude exports or other disruption to supplies could push global oil prices higher.
Source : Reuters
