Oil prices record weekly losses of 6%

Oil prices record weekly losses of 6%

During the last session of last week, oil prices dropped by over two percent. The decrease was due to the dissipation of fears regarding the tense situation in the Middle East. In addition, job data was released, which increased expectations that the US Federal Reserve (the country’s central bank) had ended its monetary tightening cycle.

After settlement, Brent crude futures dropped 2.3% or $1.92 to $84.89 per barrel, while US West Texas Intermediate crude futures decreased 2.4% or $1.95 to $80.51 per barrel.

The two crude oil prices finished the week lower. Brent crude lost about 4.8%, while American crude fell about 6%.

Official data has revealed that the job growth rate in the United States slowed down more than what was expected during October. Furthermore, wage inflation also experienced a decline, indicating worsening labor market conditions.

The data may support the view that there is no need for further interest rate hikes by the US Federal Reserve.

The Bank of England kept interest rates at their highest level in 15 years, while the Council maintained unchanged rates. This policy stabilization resulted in a resurgence of risk appetite in the markets, supporting oil prices.

A survey by the private sector revealed today that services activity in China grew slightly faster in October. However, sales grew at the weakest pace in ten months and employment activity stagnated as business confidence declined.