Friday February 2, 2024 ((rezonodwes.com)) – Oil prices recorded another session of decline, influenced by high job creation figures in the United States. This unexpected performance in the American labor market raises concerns about a firmer and prolonged stance from the American Federal Reserve (Fed).
The price of a barrel of Brent from the North Sea for delivery in April fell by 1.74%, settling at $77.33. Likewise, a barrel of American West Texas Intermediate (WTI), due in March, recorded a drop of 2.08%, reaching $72.28. Over the week, the American benchmark lost 8.4% between the opening and closing of Friday.
Phil Flynn of Price Futures Group points out that this price pressure is mainly due to the US jobs report, which beat expectations with the creation of 353,000 jobs in January, almost double the forecast. Operators now fear that the Fed will not be able to lower its rates as planned, anticipating a first cut in May rather than March.
Prolonged restrictive monetary policy could lead to higher rates, limiting credit and economic activity, and impacting oil demand. Additionally, the rising dollar, resulting from employment data, is putting additional pressure on oil prices.
Statements from ExxonMobil and Chevron, confirming their continued production, also contribute to the downward trend. Despite potential truce announcements between Israel and Hamas, the market remains fragile, with talks underway in Egypt to ease concerns over disruptions to Red Sea shipping and oil supplies.
source: barrel price
