Oil Prices Steady, Set for Weekly Decline Amid U.S. Demand Concerns and Ceasefire Talks

Oil prices remained stable on Friday but are poised to end the week lower due to concerns over weakening U.S. employment data and ongoing ceasefire discussions in Gaza, which eased fears of supply disruptions.

• Brent crude futures rose by 16 cents (0.2%) to $77.38 per barrel by 0642 GMT.
• U.S. West Texas Intermediate (WTI) crude futures increased by 15 cents to $73.16.

For the week, Brent is down about 3%, while WTI has lost nearly 5%, marking their lowest levels since early January.

The decline in prices was triggered by a significant downward revision in U.S. job growth estimates through March, raising concerns about a potential recession and its impact on oil demand in the world’s largest consumer. However, some analysts argue that the market’s reaction to the jobs revision may have been exaggerated, noting that the U.S. labor market is cooling gradually rather than slowing sharply, with signs of robust demand still present.

Adding to the downward pressure on prices, recent economic data from China, the world’s top oil importer, has shown signs of a struggling economy and reduced oil demand from refiners. The push for a ceasefire in Gaza between Israel and Hamas has also alleviated supply concerns, contributing to the price drop.

U.S. and Israeli officials are engaged in ongoing meetings in Cairo to negotiate a truce, which could further stabilize the market.

Looking ahead, some analysts believe that oil prices could find support as global inventories have decreased over the past two months, indicating potential tightness in supply.