‎Oil rises, heads for weekly loss

‎Oil rises, heads for weekly loss

Oil drilling rigs

Oil rose on Friday, but it is heading for a weekly loss as geopolitical risk premiums in the Middle East fade away, amid ongoing uncertainty about the prospects of the US economy and therefore global demand for oil.

Brent crude futures for July delivery rose by 0.31% to $83.93 per barrel at 08:08 AM KSA Time, but they are on track to register a weekly loss of 6.3%.

Similarly, US West Texas Intermediate (WTI) crude futures for June delivery rose by 0.30% to $79.19 per barrel, also heading for a weekly loss of 5.6%.

Investors are awaiting today’s release of the US monthly jobs report, with expectations of adding 250,000 jobs in April, compared to 303,000 added in March. This could signal a slowdown in the momentum of the US job market, after the Federal Reserve justified its decision to keep interest rates unchanged at its recent meeting this week by stating that policymakers need more confidence about inflation falling towards the targeted level of 2%.

This has bolstered analysts’ expectations of a prolonged tightening cycle in the United States, which could negatively impact the world’s largest economies and thus limit oil demand growth.

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