London, Aug. 9, 2024 – Oil prices were steady on Friday and on course for a weekly gain of more than 3% as U.S. jobs data calmed demand concerns and fears of a widening Middle East conflict persisted.
Brent crude futures were up 1 cents to $79.17 per barrel by 0845 GMT. U.S. West Texas Intermediate crude futures were up 8 cents at $76.27 per barrel.
Both Brent and WTI were set to gain more than 3% on a weekly basis.
“Sentiment was also boosted by positive jobs data in the U.S. with new unemployment claims coming in well below expectations,” said Panmure Liberum analyst Ashley Kelty.
“With a larger expected draw in U.S. stockpiles this week, hopes are that the U.S. continues to grow and fears of a recession may look overblown.”
Data showed the number of Americans filing new applications for unemployment benefits fell more than expected last week, suggesting fears that the labour market was unravelling were overblown and easing recession concerns.
The dollar rose on the jobs data. A stronger dollar tends to lower oil prices, however, as buyers using other currencies have to pay more for dollar-denominated crude.
Israeli forces stepped up airstrikes across the Gaza Strip on Thursday, killing at least 40 people, Palestinian medics said, in further battles with Hamas-led militants.
“Crude oil continued its recovery from its recent plunge as elevated geopolitical risks came into focus,” ANZ analyst Daniel Hynes said.
The killing last week of senior members of militant groups Hamas and Hezbollah had raised the possibility of retaliatory strikes by Iran against Israel, stoking concerns over oil supply from the world’s largest producing region.
Iran-aligned Houthi militants have also continued attacks on international shipping this week near Yemen, in solidarity with Palestinians in the war between Israel and Hamas.
Lending further support to prices, Libya’s National Oil Corp. declared force majeure at its Sharara oilfield from Wednesday, adding that it had gradually reduced the field’s output because of protests. (Reuters)
