Oil prices closed higher on Friday, posting strong gains for the week as geopolitical tensions raised bets on potential supply disruptions, although bets on an early Federal Reserve rate cut eased after a strong jobs report. Giving reduced profits.
At 14:30 ET (18:30 GMT), West Texas Intermediate crude futures settled 0.4% higher at $86.91 a barrel, while Brent oil futures expiring in May rose 0.6% to $86.91 a barrel, and had earlier reached levels last seen in mid-October. Both benchmarks gained about 4% on the week, their best performance since early-February.
Data released earlier Friday showed that nonfarm payrolls increased by 303,000 jobs in March, more than the expected 212,000 gain. The red hot report has dampened expectations that the Federal Reserve will start cutting interest rates as early as June, a cut cycle that will likely boost economic activity and thus crude oil demand in the world’s largest economy. Will increase. That said, crude oil benchmarks are still on track for their best week in two months due to the potential for worsening geopolitical situations in the Middle East, especially amid the escalating standoff between Israel and Iran. A widening outbreak of war in the Middle East could potentially cause further disruptions to oil supplies, further stressing the market in the coming months. Expectations of tight markets were further boosted by the Organization of the Petroleum Exporting Countries and allies maintaining the current pace of production cuts. On the demand front, improving economic readings from top importer China have made traders more optimistic about strong oil imports into the country this year. Baker Hughes rig count falls. The number of oil rigs operating in the US rose from 506 to 508, according to Friday data from energy services firm Baker Hughes, as refiners look to increase activity in the spring and summer to meet demand. Oil prices headed for bumper week due to fears of Israel-Iran war. Sentiment on oil prices was mainly boosted by the possibility of Iran joining the Israel-Hamas war, after Tehran threatened to retaliate in the form of an Israeli attack on the Iranian embassy in Syria. Israeli Prime Minister Benjamin Netanyahu strongly rebuked these threats. US calls for a ceasefire in Gaza were also ignored. Deteriorating geopolitical conditions in the Middle East could potentially disrupt crude production in the oil-rich region, especially if major producer Iran becomes embroiled in conflict. The ongoing Ukrainian attacks on Russian refineries have also exacerbated crude supply shortages, although the demand and supply outlook continues to be muddled by ongoing record output growth in the US, including non-OPEC output growth.