Oil prices rise after strong US jobs report, plans to replenish strategic reserve

Oil prices ended their longest weekly losing streak since 2018 on Friday,
rising after a stronger-than-expected US jobs report and plans to replenish the Strategic Petroleum Reserve.

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Expectations

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West Texas Intermediate crude rose 2.7% to settle above $71 a barrel, after trading around five-month lows for the past four sessions.

The crude had fallen for a seventh straight week, raising concerns about an imminent global glut.

However, the stronger-than-expected US jobs report increased expectations that the decline in fuel demand may be on the verge of improvement.

US President Joe Biden also announced on Friday that the United States would buy three million barrels of oil for the Strategic Petroleum Reserve each month until at least May.

This move is expected to help support oil prices and ease concerns about a glut.

Saudi Arabia’s comments that production cuts could be extended beyond March also supported oil prices.

Expectations

concerns remain about the path of oil demand, with China’s consumption expected to grow by 500,000 barrels per day next year, less than a third of the increase expected in 2023.

In the United States, many economists expect a recession to begin next year, which could lead to lower oil demand.

Analysts concluded that the market is currently seeing a wide gap “between sentiment and reality,” with oil prices not fully reflecting the underlying factors supporting oil demand.

Oil prices rise after strong US jobs report

Oil prices rise after strong US jobs report

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