International oil prices closed the day on Friday with an increase that was not enough to recover the levels of last week. Prices were mainly affected by concerns about possible recessions in the United States and Europe, coupled with further economic weakness in China. The foregoing occurred with the publication of weak manufacturing and services indicators at the global level.
At the weekly close, the West Texas Intermediate (WTI) decreased 10.4% to have a price of 88.38 dollars per barrel, while the Brent fell 14.3% to settle at a price of 94.32 dollars per barrel.
Oil prices rose on Friday on strong US job growth data, but WTI closed the week at its lowest levels since February 2022, while Brent posted its worst performance since April 2020. Both shares were rocked by concerns that a recession could hit fuel demand.
“Clearly everyone is taking the threat of recession much more seriously as we continue to see a very tight market and producers unable to turn that around,” said Craig Erlam, senior market analyst at Oanda in London.
On the other hand, one of the relevant economic data for the market was the growth of employment in the United States unexpectedly accelerated in July, as non-farm payrolls increased by 528,000 jobs, the largest gain since February, reported the Department of Worked.
“This is strong economic data that supports the oil market rally today,” said Bob Yawger, director of energy futures at Mizuho.
Oil traders were concerned this week about inflation, economic growth and demand, but signs of tight supply kept prices flat.
The number of active oil rigs in the United States, a leading indicator of future production, fell by seven to 598 in the week to August 5, the first decline in 10 weeks, energy services firm Baker Hughes Co said in its report. Friday report.
Recession concerns have intensified since the Bank of England warned on Thursday of a prolonged recession after it raised interest rates to the highest since 1995.
With information from Reuters