Aug 9 2024: Oil prices remained steady on Friday and were on track to gain over 3% for the week, driven by calming U.S. jobs data and ongoing concerns over Middle East tensions.
Brent crude futures were up by 1 cent to $79.17 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 8 cents to $76.27 per barrel.
Both Brent and WTI are set to record weekly gains exceeding 3%.
“Sentiment improved following positive U.S. jobs data, with new unemployment claims coming in significantly below expectations,” noted Panmure Liberum analyst Ashley Kelty. “With an anticipated draw in U.S. stockpiles, optimism about continued U.S. economic growth is countering recession fears.”
Recent data indicated a larger-than-expected drop in new unemployment claims, easing recession concerns and boosting market sentiment.
Despite the dollar’s rise, which typically pressures oil prices by making dollar-denominated crude more expensive for buyers using other currencies, oil prices have been supported by geopolitical risks.
In the Middle East, Israeli airstrikes in Gaza and the ongoing conflict with Hamas have heightened concerns over potential disruptions to oil supply. The recent killing of senior militants and retaliatory actions, including attacks on international shipping near Yemen by Houthi militants, have further contributed to market anxiety.
Libya’s National Oil Corp. also declared force majeure at its Sharara oilfield due to protests, leading to a reduction in output. This development has added additional support to oil prices.
