As COVID variants put pressure on U.S. jobs, oil prices fall Reuters

© Reuters. File photo: November 22, 2019, a sticker on the side of an oil storage tank in the Permian Basin in Menton, Lowen County, Texas, USA, says crude oil. REUTERS/Angus Mordant

Jessica Resnick-Olt

NEW YORK (Reuters)-Oil prices fell on Friday after a US employment report showed an incomplete recovery during the pandemic.

Due to concerns that Hurricane Ida will reduce production in the U.S. Gulf of Mexico, U.S. supplies will continue to be restricted, so the decline will be limited.

At 1:15 pm Eastern Time (1715 GMT), crude oil futures fell by 34 cents to US$72.69 per barrel, while US West Texas Intermediate (WTI) crude oil futures fell 54 cents to US$72.69 per barrel US$69.45. These two benchmark oil contracts were basically stable this week.

“Prices have fallen due to employment reports, which is clearly affected by the Delta variable,” said John Kilduff, a partner at Again Capital in New York. He added: “This is a reality check that the coronavirus is still affecting demand.”

Due to the surge in COVID-19 infections, weak demand for services and continued shortage of workers, the number of non-agricultural employment fell short of expectations, adding 235,000 jobs. Economists surveyed by Reuters had predicted that non-agricultural employment would increase by 728,000.

Sources told Reuters that at the same time, approximately 1.7 million barrels of oil production is still shut down in the U.S. Gulf of Mexico every day, and damage to the heliport and fuel depot has slowed the crew’s return to the offshore platform.

Energy analyst Vandana Hari said: “The long-term production in the U.S. Gulf region and the disruption of refining capacity in Louisiana will inevitably leave even greater loopholes in the reduced U.S. oil inventories, as well as data showing the continued strong recovery of domestic fuel demand. They are all supportive factors.” In Wanda (NASDAQ:) Insight.

After the Organization of the Petroleum Exporting Countries and its allies (ie OPEC+) insisted on plans to add 400,000 barrels per day to the market in January 2019, some analysts believe there is room for further price increases due to tight crude oil supply and signs of recovery in demand. The next few months.

The United States welcomed this move and promised to put pressure on the export club to do more to support economic recovery by releasing production.

Edward Moya, senior market analyst at OANDA, said: “As the oil market still has severe shortages for the rest of this year, with OPEC+’s loosening of production cut disciplines and the continued decline in US inventories, oil appears to be ready to rise further.”

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