Oil prices fell on Friday, posting a third straight weekly loss as U.S. jobs data dampened hopes for a near-term rate cut as investors weighed OPEC+ assurances against expectations the Federal Reserve will cut interest rates soon.
Brent crude futures fell 25 cents to $79.62 a barrel, while WTI fell 2 cents to $75.53.
The data showed U.S. job growth accelerated more than expected in May, putting the Fed on track to start cutting interest rates by September at the earliest.
The European Central Bank cut interest rates for the first time since 2019 on Thursday, despite an increasingly uncertain inflation outlook. The ECB rate cut had raised hopes of similar action from the Fed
Now, however, higher borrowing costs could slow economic activity and dampen oil demand. The jobs report showed higher rates for a longer period. That would dampen enthusiasm in the oil market.
The dollar rose 0.8% shortly after the jobs report was released, reaching a more than one-week high.
But oil prices were supported by support from fellow OPEC+ members Saudi Arabia and Russia, who showed they were ready to halt or reverse their oil production increases.
Still, crude fell for a third straight week, with Brent down 2.5% and WTI down 1.9%, on demand concerns.
Oil fell earlier this week after analysts saw Sunday’s OPEC+ meeting as a sign of rising supply, which bodes poorly for prices.
Baker Hughes said the number of active U.S. oil rigs fell four this week to 492, the lowest since January 2022.
Meanwhile, in China, data showed that crude imports fell in May even as exports rose for a second month, pointing to demand concerns in the world’s largest crude buyer.
In Russia, operations at the Novoshakhtinsk oil refinery in the southern Rostov region were severely disrupted after a fire broke out following a drone strike on Thursday.
