Oil prices stabilize amid revised US jobs data, Gaza ceasefire talks
Date
8/25/2024 8:56:43 AM
(MENAFN) Oil prices showed little change in early Asian trading on Friday, with brent crude futures holding steady at USD77.21 per barrel and U.S. West Texas Intermediate (WTI) crude futures slightly higher at USD73.05 per barrel. Despite this stability, the commodities are expected to close the week lower. The decline comes in response to downward revisions in U.S. employment data, which have raised concerns about future demand for oil. Additionally, ongoing talks to end the conflict in Gaza have alleviated fears of supply disruptions, further impacting price movements.
On Thursday, both Brent and WTI crude benchmarks experienced their first increase in five sessions, driven by hopes that the Federal Reserve might soon lower interest rates, which would potentially boost economic activity in the U.S., the world's largest oil consumer. The Fed’s meeting minutes from July, released on Wednesday, indicated a consensus among officials that a rate cut is likely next month. However, oil prices remain on track to drop approximately 3 percent for Brent and 5 percent for WTI by the end of the week. Earlier in the week, both benchmarks had fallen to their lowest levels since January, following a significant downward revision of U.S. job creation figures for the year. This revision has sparked worries about a potential recession in the U.S., which could adversely affect oil demand.
The easing of supply concerns has been partially attributed to the renewed ceasefire discussions between Israel and Hamas. The American and Israeli delegations resumed negotiations in Cairo on Thursday to address differences over a truce proposal, which has contributed to a more stable outlook for oil supply and has been reflected in the week's price movements.
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