Crude oil has plunged around 20 per cent in the last year due to an oversupply from non-OPEC member countries, even as OPEC+ aims to keep markets stable.
Oil prices settled 2% lower on Friday, with a big weekly loss after data U.S. jobs data was weaker than expected in August, which outweighed price support from a delay to supply increases by OPEC+ producers.
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Brent crude futures were down $1.63, or 2.24%, to $71.06 a barrel, their lowest level since Dec. 2021. U.S. West Texas Intermediate crude futures fell $1.48, or 2.14%, to$67.67, their lowest since June 2023.
For the week, Brent declined 10%, while WTI dropped around 8%.
U.S. government data showed employment increased less than expected in August, but a drop in the jobless rate to 4.2% suggested an orderly labor market slowdown that may not warrant a big interest rate cut from the Federal Reserve this month.
“The jobs report was a little soft and implied that the economy in the U.S. is on the slide,” Bob Yawger, executive director of energy futures at Mizuho.