Oil prices rise on strong U.S. jobs data
Oil prices rose after a strong U.S. jobs report bolstered hopes for growing energy demand, but crude prices remained on track for a small weekly decline, pressured by rising OPEC exports and strong output from the United States, APA reports quoting Reuters.
U.S. employers hired more workers than expected in July and raised their wages, the Labor Department reported.
Global benchmark Brent futures LCOc1 were up 39 cents, or 0.8 percent, at $52.40 a barrel by 11:45 a.m. EDT (1545 GMT), while U.S. West Texas Intermediate crude CLc1 was up 43 cents, or 0.9 percent, at $49.46.
"Oil prices were supported by good news this morning on the U.S. jobs front," said Andrew Lipow, president of Lipow Oil Associates in Houston, noting gasoline and diesel demand also remained strong.
Crude futures had been lower in early trade before the jobs report spurred buying. For the week, the Brent and WTI front-months were both down. Analysts said prices were pressured by rising output, although strong demand limited the losses.
"Increasing OPEC production and increasing OPEC exports are the reason the market has been trading lower," PVM Oil Associates analyst Tamas Varga said.
Barclays bank said: "we expect a downward (price) correction during this quarter", but forecast Brent at an average of $54 per barrel during the fourth quarter.
While the Organization of the Petroleum Exporting Countries is leading cuts of 1.8 million barrels per day (bpd) along with some non-members such as Russia, its July exports hit a record high, according to a report by Thomson Reuters Oil Research.
July's exports at 26.11 million bpd represented a rise of 370,000 bpd, with most coming from Nigeria.
A Reuters survey also showed OPEC oil output at 2017 highs in July, led by Libyan gains. Libya and Nigeria were exempt from OPEC's output deal.
Output in Russia is also high. Russia's largest oil producer, Rosneft (ROSN.MM), said its crude production grew by 11.1 percent year-on-year in the second quarter.
Officials from an OPEC and non-OPEC technical committee will meet in Abu Dhabi on Aug. 7-8 to discuss ways to boost compliance with their supply reduction agreement.
U.S. oil production, meanwhile, hit 9.43 million bpd, the highest since August 2015 and up 12 percent from its most recent low in June last year. C-OUT-T-EIA
Prices were around 18 percent above the lows hit in June, as strong summer demand for transport fuel has buoyed benchmark contracts.
U.S. gasoline demand rose to a record 9.842 million bpd last week, according to government data this week.
Related news releases
- 20.10.2017EBRD approves loan for TANAP
- 20.10.2017Azerbaijan gets 43% decline in export of oil products
- 20.10.2017Azerbaijan gets rise in revenues from natural gas export
- 20.10.2017Azerbaijan gets 20% decline in revenues from crude oil export
- 20.10.2017Azerbaijan triples energy export
- 20.10.2017Minister: Output cut justifies itself, oil market found balance
- 19.10.2017Extractive Industries Transparency Commission held meeting
- 17.10.2017TAP to invest 800 million euros in Albania
- 17.10.2017Italy’s Edison to purchase Azerbaijani gas
- 16.10.2017TAP pipe deliveries complete
- 16.10.2017Azerbaijan gets 2.5% decline in heating power production
- 16.10.2017SOCAR transfers AZN 1B to state budget
- 14.10.2017Oil rallies nearly 2 percent on China import boost, U.S.-Iran tensions
- 13.10.2017Executive body on ensuring transparency in extractive industry changed in Azerbaijan
- 13.10.2017Azerbaijan increases oil transportation via main pipelines
- 13.10.2017Azerbaijan gets 8% decline in natural gas production
- 13.10.2017Azerbaijan increases gasoline production 5%, reduces diesel production 21%
- 13.10.2017President: Azerbaijani gas will play a major role in solution of issues of Bulgaria's energy security
- 12.10.2017Parviz Shahbazov appointed Azerbaijan’s new energy minister
- 12.10.2017Azerbaijan sees 5% decline in gas production
- 12.10.2017Azerbaijan sees 8% decline in oil output
- 12.10.2017SOCAR to export 1.5 million tonnes of oil via Baku-Novorossiysk pipeline next year
- 12.10.2017Expenditures of STAR Refinery in Turkey increase
- 12.10.2017Azerbaijan may export diesel to Iran
- 12.10.2017Turkmenistan to resume oil transportation via BTC, Kazakhstan holding negotiations
- 12.10.2017BP announces its investments in ACG and Shahdeniz
- 12.10.2017BP Regional President names factors to turn Azerbaijan into a regional energy hub
- 12.10.2017SOCAR Trading to supply liquid gas to Malta
- 12.10.2017SOCAR: ACG currently has more than 550 million tonnes of oil
- 12.10.2017Baku hosting international petroleum summit
- 10.10.2017Board of Directors highly evaluates Nobel Oil Services’ performance
- 09.10.2017Ancient tombs unearthed during TANAP construction
- 06.10.2017Minister: TANAP to be completed earlier than planned
- 06.10.2017Gazprom agrees to open office in Azerbaijan
- 05.10.2017President gives SOCAR instruction to provide gasifying of Lahij settlement
- 05.10.2017Azerbaijan reduces gas production nearly 17%
- 05.10.2017SOCAR reduces gas production nearly 6%
- 05.10.2017Azerbaijan reduces oil production by 9%
- 05.10.2017SOCAR reduces oil production by 1.5%
- 05.10.2017Georgia increases fuel import from Azerbaijan
- 07.08.2017ENOC sends oil to Iran despite US sanctions
- 08.08.2017Turkmen President to discuss natural gas transportation in Baku
- 08.08.2017New US sanctions on Russia increase uncertainty on European gas markets - S&P
- 04.08.2017President: Azerbaijan turned into a reliable country supplying gas to world
- 03.08.2017Azerbaijan submits data on July’s oil output to OPEC
- 03.08.2017Power substation launched in Azerbaijan’s Zagatala