Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Oil prices end week on multi-month lows on recession fears

Commodities Aug 05, 2022 04:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian/File Photo
 
LCO
-1.86%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Laura Sanicola

(Reuters) -Oil prices settled higher on Friday, recouping some of this week's losses on strong U.S. job growth data, but closed the week at their lowest levels since February, rattled by worries a recession could hit fuel demand.

Brent crude settled up 80 cents to $94.92 a barrel, 11% off last Friday's settlement. U.S. West Texas Intermediate crude settled up 47 cents to $89.01, off 8% in the week.

U.S. job growth unexpectedly accelerated in July as nonfarm payrolls increased by 528,000 jobs, the largest gain since February, the U.S. Labor Department reported.

"This is strong economic data that's supporting the oil market rise today," said Bob Yawger, director of energy futures at Mizuho.

Oil traders this week have fretted about inflation, economic growth and demand, but signs of tight supply kept a floor under prices.

The number of oil rigs, an early indicator of future output, fell seven to 598 in the week to Aug. 5, the first weekly decline in 10 weeks, energy services firm Baker Hughes Co BKR.O said in its closely followed report on Friday.

Recession worries have intensified since the Bank of England's warning on Thursday of a drawn-out downturn after it raised interest rates by the most since 1995.

"Clearly, everyone is taking the threat of recession far more seriously as we're still seeing a very tight market and producers with no capacity to change that," said Craig Erlam, senior market analyst at Oanda in London.

Supplies were still relatively tight, with prompt prices still higher than those in future months, a market structure known as backwardation.

The OPEC+ producer group agreed this week to raise its oil output goal by 100,000 barrels per day (bpd) in September, but this was one of the smallest increases since such quotas were introduced in 1982, OPEC data showed.

Supply concerns were expected to ratchet up closer to winter, with European Union sanctions banning seaborne imports of Russian crude and oil products set to take effect on Dec. 5.

"With the EU halting seaborne Russian imports, there is a key question of whether Middle Eastern producers will reroute their barrels to Europe to backfill the void," said RBC analyst Michael Tran.

"How this Russian oil sanctions policy shakes out will be one of the most consequential matters to watch for the remainder of the year."

Oil prices end week on multi-month lows on recession fears
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
Kelly Mayer
Kelly Mayer Aug 05, 2022 10:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Major oil buyage soon. Black gold is on a strong discount.
Crypto Current
Crypto Current Aug 05, 2022 7:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
150$/bbl on October
Kelly Mayer
Kelly Mayer Aug 05, 2022 7:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Post midterms. Dems wont allow it sooner.
Aa Aj
Aa Aj Aug 05, 2022 7:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Says who
Naveed Anjum
Naveed Anjum Aug 05, 2022 7:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
range bound at six months low range
Meru Pet
Meru Pet Aug 05, 2022 5:49AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
0.4% 🙄
Tao of Wall Street
WallStr Aug 05, 2022 3:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The western world succeeded to make a certain sanctioned country truckloads of money, whilst shooting themselves in both feet by creating energy + oil crises via greed driven markets speculation. 🤣
Eagle Gon
Eagle_PT Aug 05, 2022 3:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wrong the OPEC greed drived energy prices higher creating inflation ending up in a global recession, which will in turn drive the energy prices lower :)
Tony Hardy
Tony Hardy Aug 05, 2022 3:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You are so correct, we have a bunch of dumbasses in the White House
Roger Miller
Roger Miller Aug 04, 2022 11:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden and the rest of the inept western governments finally succeeded in bringing down oil prices…with a recession. Well done!
Jo Riley
Jo Riley Aug 04, 2022 11:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
C'mon man, what did you expect since Obama's pulling his strings & printing his notecards?
Brad Albright
Brad Albright Aug 04, 2022 11:24PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
@Jo: THIS IS 100% TRUE!!! I walked into the copy shop yesterday and, to my surprise, there was Barak Obama at one of the copiers. I asked him what he was doing and he said he was printing Joe Bidens note cards! ALL TRUE!!!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email