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Crude oil futures gave up early gains and fell sharply on Friday, as the monthly jobs report raised concerns about the strength of the U.S. economy and Saudi Aramco’s decision Lower the official sale price in October implied expectation Weak Asian demand.
Oil prices initially rose after disappointing U.S. jobs data, which boosted expectations of a Federal Reserve rate cut that could spur economic growth, but the report also said Concerns about oil demand deepen.
OPEC+’s decision to postpone planned production increases has failed to impress oil markets for a second session in a row, as the group fails to address widespread concerns about demand. “There is no room for additional production increases from OPEC+ in 2025,” said Helge Andre Martinsen, senior energy analyst at DNB Markets.
“The market seems disappointed with this move,” ING analysts said, according to a Dow Jones report. “The problem is that the oil balance is in surplus through 2025, which suggests that prices are likely to remain under pressure unless OPEC+ takes long-term action.”
“We’re seeing some quantitative selling from hedge funds as the Fed decision gets closer,” said Dennis Kistler of BOK Financial, according to Dow Jones, adding that while the jobs numbers were mixed, a Fed rate cut this month was already priced in.
“was Interested in “The Asian economy is weakening, and now the U.S. seems to be starting to slow down a bit,” Kistler said. “The U.S. economy is not weakening as much, but the market is expecting demand to be weaker as we get into the end of the year.”
October Nymex Crude Oil (CL1:COM) Futures Trading Ends -2.1% On Friday, it closed at $67.67 a barrel, its lowest close since June 12, 2023, while November Brent crude (CO1:COM) -2.2% It closed at $71.06 a barrel on Friday, its worst settlement price since Dec. 3, 2021.
For the week, WTI and Brent crude fell 8% and 7.6% respectively, posting their biggest one-week dollar and percentage declines since the week ended October 6, 2023.
Nymex RBOB Gasoline (XB1:COM) closes in October -1.5% On Friday, it closed at $1.896 a gallon, the worst settlement since Feb. 26, 2021, and the previous month’s October Nymex heating oil (HO1:COM) -2.5% On Friday, it fell to $2.115 a gallon, the lowest since Dec. 3, 2021. For the week, the benchmarks are down 9.4% and 7.1%, respectively.
However, U.S. natural gas futures have halted a three-week decline, with the October Nymex contract (NG1:COM) set to expire. +0.9% On Friday, it rose 6.9% to $2.275/MMBtu, driven by higher liquefied natural gas exports and a smaller-than-expected increase in inventories.
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Bank of America Analyst Downgrade They forecast a $5 increase in the price of Brent crude oil to $75 a barrel in 2025, citing lower demand and a significant buildup of inventories, particularly in China.
According to BofA, global crude oil demand is projected to decline to 1.1 million barrels per day (bpd) in 2025, while non-OPEC crude oil supply is expected to increase to 1.6 million bpd, limiting OPEC+’s ability to increase production.
Even if OPEC’s plan is put on hold, the market would still return to a surplus of 730,000 barrels per day by 2025, putting downward pressure on prices, the bank said.
Due to the reduced forecast, BofA also cut its 2025 earnings estimates for major oil and gas companies by an average of 6%, “increasing the premium for superior resilience.”
energy (NYSEARCA:XLE), Energy Select Sector SPDR Fund ETF ended the week at 4:00 p.m. -5.7%.
Top 5 Energy and Natural Resources Companies Gaining the Most Over the Past 5 Days: Sable Offshore (SOC) +32.4%Empresa Distribuidora y Comercializadora (EDN) +14.7%Braskem (BAK) +9.1%MP Material (MP) +7.8%Gas del Sur Transportation Authority (TGS) +7.7%.
Top 20 Energy and Natural Resources Declines in the Last 5 Days: Nano Nuclear Energy (NNE) -34.8%Ramaco Resources (METC) -25.3%Life Energy (VTLE) -23.3%Eos Energy Enterprise (EOSE) -21.6%Batangas Petroleum (BATL) -20.7%Obsidian Energy (OBE) -20.1%Piedmont Lithium (PLL) -19.8%Alpha Metallurgical Resources (AMR) -17.7%Indonesia Energy (INDO) -17.4%Cosmos Energy (KOS) -17.3%First Majestic Silver (AG) -17.1%Naver Industries (NBR) -17%Halador Energy (HNRG) -17%Balco Energy (EGY) -16.9%Bloom Energy (BE) -16.4%Baytex Energy (BTE) -16.3%KLX Energy Services (KLXE) -16.3%Sigma Lithium (SGML) -16.2%Uranium Energy (UEC) -16.1%ALB -16.1%.
Source: Barchart.com
