Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Oil Prices Suffer Weekly Loss as Rate Cut Hopes Fade

Sun 04 Feb 2024 | 03:12 AM
Taarek Refaat

Oil prices recorded weekly losses, after strong jobs report data in the United States reduced the chances of lowering interest rates in the world's largest economy, which could weaken demand for crude, according to what was published by Sky News.

Oil prices were also affected by the decline in economic growth in China and the possibility of easing tensions in the Middle East.

Both Brent crude and US West Texas Intermediate crude lost about 7% during the week.

In Friday trading, Brent crude futures fell $1.37, or 1.7% at settlement to $77.33 per barrel.

US West Texas Intermediate (WTI) futures also fell by $1.54, or 2%, at settlement to $72.28 per barrel.

WTI CRUDE           • 72.28 -2.09%

BRENT CRUDE     • 77.33  -1.74%

MURBAN CRUDE • 77.62  -1.75%

NATURAL GAS     • 2.079  +1.41%

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 US companies added more jobs than expected in January, reducing the possibility that the US Federal Reserve will cut interest rates soon.

The dollar jumped against all major currencies following the data.