Oil Settles At 8-Month Low After Disappointing US Job Numbers
(MENAFN- The Peninsula)
The Peninsula
DOHA: Oil prices fell on Friday, settling at their lowest since January after data showed the US Economy added fewer jobs than expected last month, and weak Chinese economic data added more pressure. brent crude futures settled down $2.71, or 3.41%, to $76.81 a barrel. US West Texas Intermediate crude futures settled down $2.79, or 3.66%, at $73.52. U.S. job growth slowed more than expected in July and unemployment increased to 4.3%, pointing to raising fears of a possible recession.
Economic data from top oil importer China and surveys showing weaker manufacturing activity across Asia, Europe and the US raised the risk of a sluggish global economic recovery that would weigh on oil consumption. Meanwhile, OPEC oil output rose in July, a Reuters survey found, as a rebound in Saudi Arabian supply and small increases elsewhere offset the impact of ongoing voluntary supply cuts by other members and the wider OPEC+ alliance. An OPEC+ meeting on Thursday had left the group's oil output policy unchanged, including a plan to start unwinding one layer of production cuts from October.
Asia Spot LNG Prices Rise to 7-Month High on Hot Weather & Mideast Tensions Asian spot LNG prices rose last week to their highest level in over seven months, as high temperatures in Japan and South Korea boosted power demand and amid heightened geopolitical risks due to tensions in the Middle East.
The average LNG price for September delivery into north-east Asia was at $12.80 per mmBtu. This is the highest level since mid-December and up from $12.00/mmBtu last week. Hot weather in Japan and South Korea is driving gas burn, drawing terminal LNG stocks lower. The killing of a Hamas leader in Iran has raised concerns that the war in Gaza between Israel and Hamas was turning into a wider Middle East war.
In Europe, the rising geopolitical risk, higher temperatures, upcoming Norwegian Continental Shelf maintenance in September, and the strengthening of Asian prices, saw north-west Europe LNG prices rally 15% over the week. In the US, natural gas futures held steady on Friday, supported by rising gas flows to LNG export plants and forecasts for near record-breaking heat over the next few days but pressured by rising output, formation of a likely demand-killing storm near Florida and a tremendous oversupply of gas in storage.
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