Oil Updates – prices head for weekly loss as geopolitical risk premium wanes

Brent crude futures were up 81 cents, or 0.9 percent, to $87.66 a barrel at 3:43 p.m. Saudi time. Shutterstock.
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LONDON: Oil rose on Friday, as the US jobs market slowed more than expected last month, bolstering expectations of a pause in interest rate hikes in the world’s biggest consumer, but they remained on track for a weekly loss as supply concerns driven by Middle East tensions eased, according to Reuters.

Brent crude futures were up 81 cents, or 0.9 percent, to $87.66 a barrel at 3:43 p.m. Saudi time, while US West Texas Intermediate crude futures gained $1.01, or 1.2 percent, to $83.47 a barrel.

Both benchmarks gained more than $2 a barrel on Thursday, but were on track to lose up to 3 percent on the week.

US job growth slowed more than expected in October, official data showed on Friday, while wage inflation cooled, pointing to an easing in labor market conditions.

The data could bolster the view that the US Federal Reserve need not raise interest rates further.

The Fed held interest rates steady on Wednesday, while the Bank of England held rates at a 15-year peak. The stable policies kept oil prices supported as some risk appetite returned to markets.

Meanwhile, China’s manufacturing activity unexpectedly contracted in October. The official purchasing managers’ index fell to 49.5 in October from 50.2, dipping back below the 50-point level demarcating contraction from expansion, data from the National Bureau of Statistics showed on Wednesday.

On Friday, a private sector survey showed China’s services activity expanded at a slightly faster pace in October, but sales grew at the softest rate in 10 months and employment stagnated as business confidence waned.

Geopolitical concerns also remained in focus.

“The oil market will be watching for an escalation of tensions, particularly on the Lebanese border, as Hezbollah attacks increase,” City Index Fiona Cincotta said.