Oil Prices Surge on Jobs Data & OPEC Cuts

8 Jan 2025 , 10:10 AM

While statistics indicating an unexpected rise in U.S. job postings suggested rising economic activity and a corresponding rise in oil demand, oil prices increased on Wednesday as supplies from Russia and OPEC members constricted.

According to a Reuters survey, oil production from the Organization of the Petroleum Exporting Countries decreased in December following two months of growth. Gains elsewhere in the company and an increase in Nigerian output were counterbalanced by field maintenance in the United Arab Emirates.

In terms of the economy, the Job vacancies and Labor Turnover Survey revealed that in November, there were more job vacancies in the US and fewer layoffs, but employees were hesitant to leave. As the economy grows, so do oil prices.

In accordance with the market sources quoting data from the American Petroleum Institute on Tuesday, crude oil stocks declined last week while fuel inventories increased in other parts of the United States.

According to economists who talked to Reuters, non-OPEC countries’ increased output will contribute to the average decline in oil prices this year compared to 2024.

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