However, crude production in OPEC+ countries increased by 212,000 barrels per day (bpd) in February over January output, according to Rystad Energy data and research.
Meanwhile in the U.S., energy firms this week cut the number of oil rigs – an indicator of future production – by two to 504 this week, their lowest since Feb. 23, energy services firm Baker Hughes (BKR.O), opens new tab said.
Oil markets have homed in on signals on the timing of possible rate cuts in the U.S. and European Union in the previous two sessions. Lower interest rates could increase oil demand by boosting economic growth.
U.S. job growth rose by 275,000 new nonfarm payrolls in February, according to the Bureau of Labor Statistics, beating expectations of a 200,000 rise according to a Reuters survey.
But the unemployment rate also rose and wage growth decelerated, indicating that the U.S. economy could be slowing which kept on the table an anticipated interest rate cut in June from the Federal Reserve.
The data suggests “a less tight job market, supporting the soft landing narrative and increasing the odds of a June rate cut,” UBS analyst Giovanni Staunovo said.
U.S. Federal Reserve Chair Jerome Powell said on Thursday that the central bank was “not far” from gaining enough confidence that inflation is falling sufficiently to begin cutting interest rates.
The European Central Bank (ECB) will likely start lowering interest rates some time between April and June, French central bank head and ECB policymaker Francois Villeroy de Galhau said.
Money managers raised their net long U.S. crude futures and options positions in the week to March 5, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Source from Reuters: https://www.reuters.com/business/energy/oil-prices-up-worlds-top-consumers-boost-demand-2024-03-08/