Crude prices are up slightly on Friday, but crude is still down 6.2% this week. The U.S. releases nonfarm payrolls and wage growth at 12:30 GMT, and these indicators could affect the direction of crude.
U.S. crude prices are higher in Friday trade. In the North American session, WTI is trading at $52.73, up $0.38, or 0.74%. Brent crude is trading at $58.14, down $0.50, or 0.87%.
It’s been a rough week for U.S. crude, which has plunged 6.2%, the sharpest drop since mid-July. On Thursday, crude fell to 51.06, its lowest level since early August. Soft PMIs and a surplus in crude inventories have sent crude prices lower.
The U.S. and China are the world’s largest oil consumers, and with both economies experiencing a slowdown, oil prices could continue to decline. The U.S. economy grew by just 2.0% in Q2, compared to a robust gain of 3.1% in the first quarter. The trade war with the U.S. has taken a toll on China’s economy and the manufacturing sector has been in contraction mode as exports have fallen off. At the same time, geopolitical developments could reverse the downward trend in a hurry. Tensions between Iran and the U.S. have eased ever so slightly, but any negative developments could cause investment jitters and send crude prices higher.
Kenny is an experienced market analyst, with a focus on fundamental analysis. Kenny has over 15 years of experience across a broad range of markets and assets –forex, indices and commodities.
