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
- 20.07.2018US Charge d'Affaires in Azerbaijan: US will continue to support SGC
- 20.07.2018DESFA sells 66% of its shares for €535M
- 19.07.2018Ilham Aliyev: Azerbaijani gas will take its place in EU space soon
- 19.07.2018President: Process of industrialization is taking place at a very high pace in Azerbaijan
- 18.07.2018SOFAZ revenues from bonuses on oil and gas agreements to make up AZN 774M this year
- 18.07.2018President: Nearly $250 billion invested in Azerbaijan during past fifteen years
- 18.07.2018Azerbaijani, Italian Presidents attend inauguration of plant in Sumgayit
- 18.07.2018President: Azerbaijan’s rapid economic and industrial development needs new technologies
- 17.07.2018Azerbaijani President issues order on execution of SOFAZ 2017 budget
- 17.07.2018SOFAZ earns AZN 7.9B from sale of profit oil and gas
- 16.07.2018BTC celebrates 3 billion barrels of oil export
- 14.07.2018Non-oil sector of Azerbaijan's economy grew by 2 percent
- 13.07.2018Azerbaijani oil price decreases
- 12.07.2018Azerenergy releases information about power cut in country
- 12.07.2018Azerishig: Power supply suspended in 27% of Azerbaijan’s territory
- 12.07.2018Power supply cut in several regions of Azerbaijan
- 12.07.2018Azerbaijan doubles electricity export this year
- 12.07.2018Azerbaijan increases revenues from gas export by 8 percent
- 12.07.2018Azerbaijan increases crude oil export by 40%
- 12.07.2018Azerbaijan doubles revenues from export of oil products
- 12.07.2018Azerbaijani oil price decreases
- 09.07.2018SOCAR Group borrows 419 million manats this year
- 05.07.2018Kemaleddin Heydarov: “None of previously stated remarks were not taken into account”
- 05.07.2018Azerbaijani President: "I express my gratitude to Russia and Georgia"
- 04.07.2018President Ilham Aliyev chairs meeting on situation of country’s energy system
- 04.07.2018Electricity supply of all regions of Azerbaijan resumed
- 03.07.2018Azerenerji: "Janub" and "Sumgayit" power stations activated, Baku's electricity supply restored
- 03.07.2018Ministry of Energy and Azerenerji issue joint information on electricity transmission issues
- 03.07.2018Georgia starts energy export to Azerbaijan
- 02.07.2018BP Azerbaijan: We look forward to continuing to work closely with the government of Azerbaijan and other co-venturers towards our next target of gas to Europe in 2020
- 02.07.2018SOCAR President: Shah Deniz 2 platforms constructed by SOCAR’s affiliate companies
- 02.07.2018Shah Deniz 2 begins gas deliveries to Turkey
- 29.06.2018Azerbaijani parliament ratifies new budget rules
- 29.06.2018Rick Perry: US to continue supporting Azerbaijan’s global energy projects
- 28.06.2018The mechanism of economic amnesty to be developed in Azerbaijan
- 28.06.2018First commercial deliveries within Shah Deniz-2 to begin next week,
- 25.06.2018Azerbaijan increases energy production by more than 9%
- 25.06.2018New Azerbaijani Vice President appointed to BP
- 25.06.2018Azerbaijan welcomes OPEC decision to increase oil output
- 22.06.2018OPEC agrees to boost oil production by 1 million b/d
- 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