Crude Market Stable Amidst Fluctuating Factors

6 Sep 2024 , 10:33 AM

Oil prices nudged higher in early trade on Friday as investors assessed a large drawdown from US oil inventories and a pause in OPEC+ production increases against mixed US job data.

Brent crude prices increased 19 cents, or 0.26%, to $72.88, while U.S. West Texas Intermediate crude futures advanced 22 cents, or 0.32%, to $69.37.

On Thursday, Brent finished down 1 cent to its lowest closure since June 2023, while WTI sank 5 cents to its lowest closing since December 2023, after data indicated that US petroleum stockpiles fell to a one-year low last week.

Last week, crude stockpiles declined by 6.9 million barrels to 418.3 million barrels, falling short of analysts’ estimates of a 993,000-barrel draw, according to a Reuters poll.

Also raising prices, OPEC+ agreed to postpone a planned increase in oil output for October and November, the producers’ organisation said on Thursday, adding that it might suspend or reverse the hikes if necessary.

The most recent US economic data provided some relief about the economy’s health to a market seeking signals about the course of Federal Reserve interest rate decreases.

The US services sector remained stable in August, but employment gains slowed, consistent with a softening labour market.

Mixed signals from employment market indicators dragged on the dollar, which fell around a one-week low ahead of critical monthly payrolls data due later this Friday.

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