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Oil rates decline on Friday over ongoing recession in US, ceasefire efforts in Mideast
(MENAFN) On Friday, oil prices experienced a decline as a result of ongoing recession concerns in the US, cease-fire efforts in the Middle East, and a mixed outlook for demand. International benchmark brent crude was trading at USD79.08 per barrel at 10:45 AM local time (07:45 GMT), marking a slight decrease of 0.1 percent from the previous session's close at USD79.16 per barrel. Similarly, the American benchmark West Texas Intermediate (WTI) was priced at USD76.13 per barrel, also reflecting a 0.1 percent decline from its previous close of USD76.19 per barrel.
The drop in prices was driven by heightened recession fears following last week's US employment report, which raised concerns about future oil demand. Although a decrease in unemployment benefit applications provided some relief regarding the labor market's health, broader worries about recession and weak company financials have moderated market enthusiasm for oil.
Simultaneously, the potential for a cease-fire in the Middle East, where much of the world's oil reserves are located, has alleviated some supply concerns and exerted downward pressure on oil prices. Mediators from Egypt, Qatar, and the US have urged Israel and Hamas to finalize a cease-fire and hostage release deal, emphasizing the urgency of concluding the agreement without further delays.
Despite these downward pressures, strong demand prospects in the US have provided some support to oil prices. Recent data showing a decrease in crude oil stocks helped temper the extent of the price declines, indicating that demand remains robust despite broader economic uncertainties.
The drop in prices was driven by heightened recession fears following last week's US employment report, which raised concerns about future oil demand. Although a decrease in unemployment benefit applications provided some relief regarding the labor market's health, broader worries about recession and weak company financials have moderated market enthusiasm for oil.
Simultaneously, the potential for a cease-fire in the Middle East, where much of the world's oil reserves are located, has alleviated some supply concerns and exerted downward pressure on oil prices. Mediators from Egypt, Qatar, and the US have urged Israel and Hamas to finalize a cease-fire and hostage release deal, emphasizing the urgency of concluding the agreement without further delays.
Despite these downward pressures, strong demand prospects in the US have provided some support to oil prices. Recent data showing a decrease in crude oil stocks helped temper the extent of the price declines, indicating that demand remains robust despite broader economic uncertainties.
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