Oil settles down 2 per cent with big weekly drop after US jobs data
OIL & GAS

Oil settles down 2 per cent with big weekly drop after US jobs data

Oil prices dropped by 2 per cent, experiencing a significant weekly decline after US jobs data for August fell short of expectations, which overshadowed support for prices due to OPEC+ producers delaying supply increases.

Brent crude futures decreased by $1.63, or 2.24 per cent, reaching $71.06 per barrel, their lowest since December 2021. Meanwhile, US West Texas Intermediate (WTI) crude futures fell by $1.48, or 2.14 per cent, to $67.67, marking their lowest point since June 2023.

For the week, Brent recorded a 10 per cent decline, while WTI saw an 8 per cent drop.

According to US government data, employment growth in August was weaker than anticipated. However, the jobless rate fell to 4.2 per cent, indicating a gradual slowdown in the labour market, which may not prompt the Federal Reserve to implement a significant interest rate cut this month.

Bob Yawger, executive director of energy futures at Mizuho, noted that the jobs report suggested a softening economy in the US Yawger also mentioned that concerns over Chinese demand continued to weigh on oil prices.

Brent settled at its lowest point since June 2023, despite a drop in US oil inventories and OPEC+'s decision to delay planned increases in oil output.

US crude inventories declined by 6.9 million barrels, falling to 418.3 million barrels last week, compared to an expected drop of 993,000 barrels, as per a Reuters poll of analysts.

Additionally, signs of progress between Libya's rival factions toward resolving a dispute that has halted the country's crude exports added pressure to oil prices this week. While exports remained mostly halted, some loadings from storage were permitted.

Oil prices dropped by 2 per cent, experiencing a significant weekly decline after US jobs data for August fell short of expectations, which overshadowed support for prices due to OPEC+ producers delaying supply increases. Brent crude futures decreased by $1.63, or 2.24 per cent, reaching $71.06 per barrel, their lowest since December 2021. Meanwhile, US West Texas Intermediate (WTI) crude futures fell by $1.48, or 2.14 per cent, to $67.67, marking their lowest point since June 2023. For the week, Brent recorded a 10 per cent decline, while WTI saw an 8 per cent drop. According to US government data, employment growth in August was weaker than anticipated. However, the jobless rate fell to 4.2 per cent, indicating a gradual slowdown in the labour market, which may not prompt the Federal Reserve to implement a significant interest rate cut this month. Bob Yawger, executive director of energy futures at Mizuho, noted that the jobs report suggested a softening economy in the US Yawger also mentioned that concerns over Chinese demand continued to weigh on oil prices. Brent settled at its lowest point since June 2023, despite a drop in US oil inventories and OPEC+'s decision to delay planned increases in oil output. US crude inventories declined by 6.9 million barrels, falling to 418.3 million barrels last week, compared to an expected drop of 993,000 barrels, as per a Reuters poll of analysts. Additionally, signs of progress between Libya's rival factions toward resolving a dispute that has halted the country's crude exports added pressure to oil prices this week. While exports remained mostly halted, some loadings from storage were permitted.

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?