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Oil futures ended sharply lower on Friday after a monthly jobs report stoked concerns about the strength of the U.S. economy and Saudi Aramco’s decision to halt crude production gave up early gains. Reduce official sales price in October Implicit Expectations Demand in Asia is weak.
Oil prices initially rose after a disappointing U.S. jobs report raised hopes of a Federal Reserve interest rate cut that could stimulate economic growth, but the report Growing concerns about oil demand.
OPEC+’s decision to postpone a planned production increase failed to impress oil markets for a second straight day as the group failed to address wider concerns about demand. “There is no room for OPEC+ production increases in 2025,” said Helge Andre Martinsen, senior energy analyst at DNB Markets.
“The market seems less than impressed with the move,” ING analysts said, as reported by Dow Jones. “The issue is that oil balances are in surplus through 2025, suggesting prices are likely to remain under pressure unless OPEC+ takes longer-term action.”
“We are seeing some volume selling by hedge funds as the Fed decision approaches,” Dennis Kistler of BOK Financial said, according to Dow Jones, adding that despite mixed employment data, a rate cut by the Fed this month is already priced in.
” Worried “We were concerned about the weakening of the Asian economies, but it looks like the U.S. is starting to slow a little bit,” Kistler said. “The U.S. economy is not weakening significantly, but I think the market is expecting less demand as we get towards the end of the year.”
October NYMEX Crude Oil (CL1:COM) contract expires -2.1% November Brent crude (CO1:COM) closed at $67.67 a barrel on Friday, its lowest since June 12, 2023. -2.2% It fell to $71.06 per barrel on Friday, its worst settlement price since Dec. 3, 2021.
For the week as a whole, WTI and Brent fell 8% and 7.6%, respectively, their biggest one-week declines in dollar terms and percentage value since the week ended Oct. 6, 2023.
Last month October NYMEX RBOB gasoline (XB1:COM) closing price -1.5% The last-month October NYMEX heating oil contract (HO1:COM) fell to $1.896 a gallon on Friday, its worst closing price since Feb. 26, 2021. -2.5% It was $2.115 a gallon on Friday, the lowest since Dec. 3, 2021. The benchmarks have fallen 9.4% and 7.1%, respectively, this week.
However, U.S. natural gas futures ended a three-week decline, with the October NYMEX contract (NG1:COM) dropping +0.9% Rising liquefied natural gas (LNG) exports and weaker-than-expected inventory builds pushed prices to $1.275/MMBtu on Friday, up 6.9% from the previous week.
ETF: (USO), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (USOI), (UNG), (BOIL), (KOLD), (UNL), (FCG)
Bank of America analyst Downgraded The company cut its 2025 Brent crude price forecasts by between $5 and $75 a barrel, citing weaker demand, particularly from China, and a big build-up in inventories.
According to BofA, year-over-year growth in global crude oil demand in 2025 is expected to be weak at 1.1 million bpd, while non-OPEC crude oil supply growth of nearly 1.6 million bpd will limit OPEC+’s ability to increase production.
The bank said that despite OPEC’s plans currently on hold, the market would move into a surplus of 730,000 barrels per day in 2025, putting downward pressure on prices.
The downward revision led Bank of America to cut its 2025 profit forecasts for oil and gas giants by an average of 6%, “raising its assessment of their superior resilience.”
Energy (NYSEARCA:XLE(represented by the Energy Select Sector SPDR Fund ETF) ended the week with a four-day gain. -5.7%.
Top 5 Energy and Natural Resources Stock Gains Over the Last 5 Days: Sable Offshore (SOC) +32.4%Empresa Distribuidora y Comercializadora (EDN) +14.7%Braskem (BAK) +9.1%MP Material (MP) +7.8%Southern Gas Transport Bureau (TGS) +7.7%.
Top 20 decliners in the Energy and Natural Resources sector over the last 5 days: Nano Nuclear Energy (NNE) -34.8%Ramaco Resources (METC) -25.3%Vital Energy (VTLE) -23.3%Eos Energy Enterprises (EOSE) -21.6%Battalion Oil (BATL) -20.7%Obsidian Energy (OBE) -20.1%Piedmont Lithium (PLL) -19.8%Alpha Metallurgical Resources (AMR) -17.7%Indonesia Energy (INDO) -17.4%Cosmos Energy (KOS) -17.3%First Majestic Silver (AG) -17.1%Nabaaz Industries (NBR) -17%Hallador Energy (HNRG) -17%Valco Energy (EGY) -16.9%Bloom Energy (BE) -16.4%Baytex Energy (BTE) -16.3%KLX Energy Services (KLXE) -16.3%Sigma Lithium (SGML) -16.2%Uranium Energy (UEC) -16.1%Albemarle (ALB) -16.1%.
Source: Barchart.com
