Oil prices fell further on Friday, as demand fears due to macroeconomic headwinds were compounded by another partial lifting of Russia’s fuel export ban.
On Friday, Brent futures were down 47 cents, or 0.56%, at $83.60 at 1411 GMT, while U.S. West Texas Intermediate crude futures were down 55 cents, or 0.67%, at $81.76.
Brent and WTI futures were on course for almost 12% and 10% week-on-week declines, respectively, on Friday, as concerns that higher for longer interest rates will slow global growth and hammer fuel demand offset announcements by Saudi Arabia and Russia confirming voluntary supply cuts to the end of the year.
U.S. job growth rose by 336,000 in September according to Labor Department statistics, smashing economists’ forecasts of a 170,000 rise.
The sentiment of the statistics is likely mixed for oil prices. A robust U.S. economy could buoy sentiment for near-term oil demand, analysts said, but conversely the statistics resulted in a stronger U.S. dollar and increased bets on another interest rate hike in 2023.
A strong U.S. dollar is typically negative for oil demand as it makes the commodity relatively more expensive for holders of other currencies, while the expected impact on demand of higher for longer interest rates has been a major factor in this week’s crude price slide.