Oil prices settled lower on Friday, and posted their steepest weekly loss in three months as investors weighed weak U.S. jobs data and possible timing of a Federal Reserve interest rate cut. Brent crude futures for July settled 71 cents lower, or 0.85%, to $82.96 a barrel.
U.S. West Texas Intermediate crude for June fell 84 cents, or 1%, to $78.11 a barrel. Investors were concerned that higher-for-longer borrowing costs would curb economic growth in the U.S., the world’s leading oil consumer, after the Federal Reserve decided this week to hold interest rates steady. For the week, Brent declined more than 7%, while WTI fell 6.8%.
U.S. job growth slowed more than expected in April and the annual wage gain cooled, data showed on Friday, prompting traders to raise bets that the U.S. central bank will deliver its first interest rate cut this year in September. The Fed held rates steady this week and flagged high inflation readings that could delay rate cuts.
Higher rates typically weigh on the economy and can reduce oil demand. Geopolitical risk premiums due to the Israel-Hamas war have faded as the two sides consider a temporary ceasefire and hold talks with international mediators.
Asia spot LNG price rises on hotter summer forecast, supply concerns
Asian spot liquefied natural gas (LNG) prices rose this week on forecasts for higher cooling demand this summer and tracking a rally in European gas prices, underpinned by supply concerns due to Middle East tensions and weakness in U.S. feedgas demand. The average LNG price for June delivery into north-east Asia rose to $10.40 per million British thermal units (mmBtu), from $10.20/mmBtu in the previous week, industry sources estimated.
In south and southeast Asia, high temperatures have recently buoyed power demand, lifting power sector gas burn and offering support to demand in India and Thailand, with some prompt spot demand emerging in both markets last week.
In Europe, gas stocks are 62.6% full, high levels for the time of year, leaving the continent well on track to refill ahead of next winter. The Dutch TTF contract was up 3% at $9.45 per mmBtu. In the U.S., natural gas futures jumped by about 5% on Friday and a record 33% for the week as the amount of gas flowing to LNG export plants increased with the return of Freeport LNG in Texas..
— By The Al-Attiyah Foundation
