By Adedapo Adesanya
Crude oil prices settled higher on Friday, recouping some of this week’s losses on strong job growth data in the United States, but closed week-on-week at their lowest levels since February.
Brent crude settled up by 80 cents to $94.92 a barrel while the US West Texas Intermediate (WTI) crude settled higher by 47 cents to $89.01 per barrel.
The market, which has been rattled by worries a recession could hit fuel demand, clung to the bullish news that job growth in the world’s largest producer unexpectedly accelerated in July as nonfarm payrolls increased by 528,000 jobs, the largest gain since February, according to the US Labor Department.
Prices have come under pressure this week as the market has fretted over the impact of inflation on economic growth and demand, but signs of tight supply kept a floor under prices.
Recession worries have intensified since the Bank of England’s warning on Thursday of a drawn-out downturn after it raised interest rates by the most since 1995.
The producer group known as the Organisation of the Petroleum Exporting Countries and allies (OPEC+) agreed this week to raise its oil output goal by 100,000 barrels per day in September, but this was one of the smallest increases since such quotas were introduced in 1982.
The output target, equivalent to 0.1 per cent of global demand, was viewed by some analysts as bearish for the market.
Meanwhile, supply concerns are expected to intensify closer to winter, with European Union (EU) sanctions banning seaborne imports of Russian crude and oil products set to take effect on December 5.
Analysts noted that with the EU halting seaborne Russian imports, there is a key question of whether Middle Eastern producers will reroute their barrels to Europe to help tame the supply shortages.
The number of oil rigs, an early indicator of future output, fell seven to 598 in the week to August 5, the first weekly decline in 10 weeks, energy services firm Baker Hughes Co said in its closely followed report on Friday.
Modupe Gbadeyanka