Mixed signals from US employment statistics impact prices
Oil prices continued to fall on Monday on concerns about weak demand from China, although the presence of geopolitical risks in the Middle East and Russia limited the decline.
As of 7:23 GMT, Brent futures were down 12 cents, or 0.2%, at $81.96 a barrel, and West Texas Intermediate (WTI) was trading at 21 cents, or 0.2 cents, at $81.96 a barrel. %) to $77.8.
read more: Crude oil prices rise as demand surges in the US and China
Brent and WTI both fell last week, with Brent down 1.8% and WTI down 2.5%. These declines can be attributed to weak data from China indicating weak demand from the world’s largest oil importer.
Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities, said concerns about weak demand in China outweighed the impact of OPEC+’s decision to extend supply cuts. He also noted that mixed signals from the U.S. jobs report led some traders to adjust their positions. However, he added that the decline in oil prices is likely to be limited due to increasing geopolitical risks such as the continued conflict in the Middle East and the possibility of escalation of conflict between Russia and neighboring countries.
Recent data reveals that U.S. job growth accelerated in February, but rising unemployment and modest wage growth keep the possibility of a June interest rate cut by the Federal Reserve on hold has been done.
China’s ambitious growth goals for 2024
Last week, China announced a target for economic growth of around 5% in 2024, which many analysts considered an ambitious target without significant additional stimulus. The data also showed that China’s crude oil imports in the first two months of this year were higher than the same period in 2023 but lower than the previous month, reflecting a downward trend in purchases by the world’s largest buyer. Ta.
OPEC+ extends oil production cuts
On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, agreed earlier this month to extend voluntary production cuts of 2.2 million barrels per day into the second quarter. Analysts at ANZ Research said the extension could lead to market tightening as demand recovers from a seasonal slump.
For more market news, click here here.
