2024-02-02 17:42:52
Oil fell regarding 2.0 percent on Friday following the chances of the US Central Bank reducing short-term interest rates decreased, and the two benchmarks suffered a weekly loss in light of the faltering economy of China and the continuation of geopolitical tension.
Gold prices fell on Friday as the dollar and US Treasury bond yields rose following a strong non-farm jobs report in the United States.
Brent crude futures fell $1.40, or 1.8 percent, to $77.30 per barrel, and US West Texas Intermediate crude futures fell $1.59, or 2.2 percent, to $72.23 per barrel.
High interest rates, which weaken economic growth and demand for oil, are likely to persist in major economies such as the United States and the eurozone in the near term.
Friday’s data showed that employers added more jobs than expected in January, making it less likely that the US central bank will cut interest rates soon. The dollar jumped once morest all major currencies following the data.
An ECB policymaker also indicated on Friday that it was too early to cut interest rates in the region.
Concerns regarding China’s economic recovery continued, as the International Monetary Fund expected economic growth in the world’s second-largest economy to slow to 4.6 percent in 2024, and to 3.5 percent on average in 2028.
Oil prices fell more than two percent on Thursday at settlement following market speculation that Israel had agreed to a ceasefire proposal in Gaza.
The mediators are awaiting Hamas’ response to the proposal drafted last week with the chiefs of Israeli and American intelligence and approved by Egypt and Qatar regarding the first long ceasefire.
Stopping the agreement may reduce the political risks looming over shipping lanes in the Gulf and the Red Sea, which are essential for global energy flows.
Two OPEC+ sources said Thursday that the group has kept its oil production policy unchanged, and will decide in March whether or not to extend the voluntary oil production cuts in effect in the first quarter.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, in what is known as the OPEC+ group, are committed to production cuts amounting to 2.2 million barrels per day in the first quarter, in line with what it announced in November.
1706901736
#Oil #declines #Central #Bank #postpone..
