Adedapo Adesanya
By Adedapo Adesanya
Crude oil futures prices went up on Friday as an increase in US jobs eased some financial market concerns that a slowing global economy could dent oil demand.
However, oil still posted its biggest weekly loss since mid-July, after a run of weak economic data underlined concerns over global demand.
Brent crude futures rose 78 cents or 1.35 percent to $58.49 per barrel. West Texas Intermediate (WTI) crude futures gained 52 cents, or 0.99 percent to trade at $52.97 per barrel.
US job growth increased moderately in September, with the unemployment rate dropping to near a 50-year low of 3.5 percent, according to a U.S. Labor Department report.
This was the lowest rate since December 1969.
The report, however, came following weak economic reports which noted a plunge in manufacturing activity to more than a 10-year low in September and a sharp slowdown in services industry growth to levels last seen in 2016.
Analysts noted that following the resumption of trade talks between the US and China amid trade tensions, this is likely to fan concerns over the global economy.
This could ignite fears around falling demand for crude, while geopolitical tensions could spark negative supply side shocks.
On the supply side, Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, said on Thursday that the world’s top crude oil exporter had fully restored oil output after attacks on its facilities last month knocked out more than 5 percent of global oil supply.
