Oil Updates – crude set to end week lower on demand concerns, easing supply woes

Both Brent crude futures and US West Texas Intermediate crude futures were up 10 cents, or 0.1 percent each, at 7:33 a.m. Saudi time. Shutterstock
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NEW YORK/SINGAPORE: Oil prices were little changed on Friday, on track to end the week lower, as downward revisions to US employment data raised concerns over demand and renewed ceasefire talks in Gaza eased worries about supply disruptions, according to Reuters.

Both Brent crude futures and US West Texas Intermediate crude futures were up 10 cents, or 0.1 percent each, at 7:33 a.m. Saudi time. Brent futures, which has shed about 3 percent so far this week, was at $77.32 a barrel, and WTI, which has lost nearly 5 percent, was at $73.11.

Both benchmarks hit their lowest since early January this week, after the US government sharply lowered its estimate of jobs added by employers in the country this year through March.

That sparked concern about a potential recession in the US hurting demand in the top oil consuming nation, but some analysts say that’s an overreaction to the jobs revision.

“The recent slump was driven by concerns of a hard economic landing in the US However, data showed the labor market is cooling gradually instead of rapidly slowing. This was supported by signs of robust demand in the US,” ANZ Research analysts said.

Recent data from China, the top oil importer, has pointed to a struggling economy and slowing oil demand from refiners there. A renewed push for a ceasefire in Gaza between Israel and Hamas also helped ease supply worries and weighed on oil prices.

US and Israeli delegations started a new round of meetings in Cairo on Thursday to resolve differences over a truce proposal.

Some analysts say there are signs that oil could find support in the weeks ahead as global oil inventories have declined over the past two months.

“The market continues to muse over OPEC’s next move. The producer group announced earlier this year that it plans to increase output in Q4. However, prices remain depressed. This could see these plans delayed in an effort to support prices,” the ANZ analysts said.