Oil prices rose on Friday but were still on track for a second consecutive weekly loss after sliding on fears that slower global economic growth would hurt energy demand.
Benchmark Brent crude LCOc1 rose 43 cents, or 0.7 per cent, to $58.14 a barrel by 1000 GMT, while U.S. West Texas Intermediate (WTI) crude futures CLc1 rose 23 cents, or 0.4 per cent, to $52.68.
But Brent was down six per cent on the week while U.S. crude was 5.7 per cent lower on the biggest weekly losses since July.
“Both are on track for hefty weekly losses and it will take a brave man to bet against the bearish tide,’’ Stephen Brennock of oil broker PVM said.
“As things stand, demand and supply-side developments are anything but supportive and there can be no happy ending for those of a bullish disposition,’’ he added.
Weak U.S. services sector and jobs growth data on Thursday added to worries about global oil demand and exacerbated fears that a protracted U.S.-China trade war could push the global economy into a recession.
Investors are awaiting U.S. non-farm payrolls data due out on Friday to determine the next move.
“Given that U.S. growth is largely supported by a buoyant consumer whose confidence is built on a strong job market, this release will be critical in shaping expectations around future Fed policy, which will have spill-over effects on oil markets,’’ said Harry Tchilinguirian, global oil strategist at BNP Paribas.
U.S. job growth likely picked up in September, with wages increasing solidly, which could assuage financial market concerns that the slowing economy was teetering on the brink of a recession.
Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, said on Thursday the world’s top crude oil exporter had fully restored oil output after attacks on its facilities last month knocked out more than five per cent of global oil supply.
“The fact that Saudi restored its production back to original capacity sooner than expected means investors had to price out raised supply risks at a faster clip than would have otherwise been the case,’’ said Fawad Razaqzada, market analyst at futures brokerage Forex.com.
He said weak economic data, particularly from U.S. manufacturing sector, also raised fears for oil demand, “but now that some of these factors have been priced in, oil prices may fall less sharply going forward or at best start to form a base’’.
France said Iran and the U.S. have one month to get to the negotiating table, suggesting that Tehran’s plan to increase its nuclear activities in November would spark renewed tension in the region.
