Oil Overcomes Geopolitical Jitters and Closes at Lows Not Seen Since January
At their session lows, both benchmarks plunged more than $3 per barrel.
Brent Crude Futures Fell 3.41%, While West Texas Intermediate Futures Dropped 3.66%
Oil prices fell to their lowest level since January on Friday after data showed that the U.S. economy created fewer jobs than expected last month, with weak economic data from China adding further pressure.
Brent crude futures dropped $2.71, or 3.41%, to $76.81 per barrel, while West Texas Intermediate (WTI) futures fell $2.79, or 3.66%, to $73.52.
At their session lows, both benchmarks plunged more than $3 per barrel.
Job growth in the United States slowed more than expected in July, with the unemployment rate rising to 4.3%, heightening fears of a potential recession.
Economic data from China, the world’s largest oil importer, along with a survey showing weaker manufacturing activity in Asia, Europe, and the United States, increased concerns over a sluggish global economic recovery that could weigh on consumption.
The decline in manufacturing activity in China further dampened prices, adding to worries about demand growth after June data showed imports and refinery activity were lower than the previous year.
Meanwhile, OPEC oil production rose in July, according to a Reuters survey, as a rebound in Saudi Arabian supply and small increases elsewhere offset the impact of ongoing voluntary supply cuts by other members and the broader OPEC+ alliance.
The Organization of the Petroleum Exporting Countries (OPEC) pumped 26.70 million barrels per day (bpd) last month, up 100,000 bpd from June, according to the survey, which is based on shipping data and information from industry sources.
OPEC+, in a meeting held on Thursday, did not alter its production policy, including a plan to start unwinding a cap on output cuts from October.
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