Oil prices stumble to second straight weekly loss on easing Middle East tensions

November 04, 2023 06:40 AM AEDT | By Investing
Follow us on Google News:

Investing.com -- Oil prices fell Friday, racking up a second-straight weekly loss as easing concerns about Middle East supply disruptions took center stage offsetting the boost from a swing lower in the dollar following a weaker monthly jobs report.

By 2:30 ET (18:30 GMT), the U.S. crude futures settled 2.4% lower at $80.51 a barrel, while the Brent contract fell 2.4% to settle at $84.89 a barrel.

Crude dives for second-weekly loss as Middle East risk premium deflates

The two crude benchmarks fell 4% and 6% respectively, marking their second consecutive week in red, after a lack of escalation in the Israel-Hamas war eased worries about a disruption to supplies in the Middle East.

Israel was still carrying out a major ground assault on Gaza, while world powers attempted to broker a cease-fire to get some humanitarian aid into the war-torn region.

Iran also called for an oil supply embargo against Israel, while Israel continued to carry out a major ground assault on Gaza, but other members of the Organization of Petroleum Exporting Countries have failed to agree with this call.

Additionally, while a private sector survey, released earlier Friday, showed China's services activity expanded at a slightly faster pace in October, official numbers earlier in the week showed China's manufacturing activity unexpectedly contracted in October.

Dollar slide on weaker monthly jobs report fails to help crude stem losses

Oil prices were offered little respite despite a more than 1% fall in dollar following data showing the U.S. economy created fewer jobs than expected last month, ramping up bets that the Fed is unlikely to resume rate hikes.

The U.S. economy added 150,000 jobs during the month, down from a revised figure of 297,000 in September and below the expected 180,000.

"Given Powell's dovish tone at the FOMC meeting this past week and the softness of this data, it is hard to see how the Fed might hike again in December. It is very likely that we already saw the final hike for this cycle in July," Jefferies said in a note.

Baker Hughes rig count falls; CFTC data in focus

Oilfield services firm Baker Hughes Co (NYSE:BKR) reported its weekly U.S. rig count fell to 496 from 504.

Eager for insight into whether appetite for bullish bets on oil continue to wane, traders will be watching the CFTC positioning data slated for release later in the day.

(Ambar Warrick, Peter Nurse contributed to this item.)

This article first appeared in Investing.com


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.



Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK