Oil heads for weekly loss as geopolitical risk premium wanes – Times of India

by The Technical Blogs


Oil prices fell on Friday, on track for a weekly loss as supply concerns driven by Middle East tensions eased, while jobs data raised expectations the US federal reserve could be done hiking interest rates in the biggest oil consuming economy.
Brent crude futures were down USD 1.04, or 1.2%, to USD 85.81 a barrel at 12:24 pm EDT (1724 GMT). US West Texas Intermediate crude futures fell USD 1.03, or 1.3%, to USD 81.42 a barrel.
Both benchmarks were on track for weekly losses of more than 5%.
Hezbollah leader Sayyed Hassan Nasrallah, speaking for the first time since the Israel-Hamas war erupted, warned on Friday that a wider conflict in the Middle East was possible but did not commit to opening another front on Israel’s border with Lebanon.
“This pseudo-freezes the conflict in Gaza,” said Bob Yawger, director of energy futures at Mizuho.
Meanwhile, US job growth slowed more than expected in October, official data showed, while wage inflation cooled, pointing to an easing in labour market conditions.
The data bolstered the view that the US federal reserve need not raise interest rates further.
The Fed held interest rates steady this week, while the Bank of England kept rates at a 15-year peak, supporting oil prices as some risk appetite returned to markets.
But a private sector survey on Friday showed that while China’s services activity expanded at a slightly faster pace in October, sales grew at the softest rate in 10 months and employment stagnated as business confidence waned.
The data followed a reading from the National Bureau of Statistics on Wednesday that showed China’s manufacturing activity unexpectedly contracted in October.
On the supply side, Saudi Arabia is expected to reconfirm an extension of its voluntary oil output cut of 1 million barrels per day through December, based on analyst expectations.


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