Unexpected increase in US jobs openings points to expanding economic activity and consequent growth in demand
08 January 2025 - 07:51
byKatya Golubkova and Jeslyn Lerh
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Singapore — Oil prices rose on Wednesday as supply from Russia and Opec members tightened while data showing an unexpected increase in US jobs openings pointed to expanding economic activity and consequent growth in oil demand.
Brent crude was up 28c, or 0.36%, to $77.33 a barrel at 4.15am GMT. US West Texas Intermediate crude climbed 40c, or 0.54%, to $74.65.
Oil output from oil cartel Opec fell in December after two months of increase, a Reuters survey showed. Field maintenance in the United Arab Emirates offset a Nigerian output hike and gains elsewhere in the group.
In Russia, oil output averaged 8.971-million barrels a day in December, below the country’s target, Bloomberg reported citing the energy ministry.
On the economic front, job openings rose in the US in November and the number of layoffs was low, while workers were reluctant to quit, the job openings and labour turnover survey (Jolts) showed.
“Robust US economic data continues to bolster the outlook for the US economy and oil demand, further supported by a larger-than-anticipated drawdown in crude inventories,” said IG market strategist Yeap Jun Rong.
“After trading within a prolonged tight range since October last year, selling pressures may have been exhausted for now, paving the way for a modest recovery,” Yeap said.
US crude oil stocks fell last week while fuel inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday.
Going forward, analysts expect oil prices to be on average down this year from 2024 due in part to production increases from non-Opec countries.
“We are holding to our forecast for Brent crude to average $76 a barrel in 2025, down from an average of $80 a barrel in 2024,” BMI, a division of Fitch Group, said in a client note.
“The bearish view is being led by our fundamental data forecast, which points to an oversupply this year, with supply growth outstripping demand growth by 485,000 barrels a day.”
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Tighter Opec supply ad US jobs data support oil
Unexpected increase in US jobs openings points to expanding economic activity and consequent growth in demand
Singapore — Oil prices rose on Wednesday as supply from Russia and Opec members tightened while data showing an unexpected increase in US jobs openings pointed to expanding economic activity and consequent growth in oil demand.
Brent crude was up 28c, or 0.36%, to $77.33 a barrel at 4.15am GMT. US West Texas Intermediate crude climbed 40c, or 0.54%, to $74.65.
Oil output from oil cartel Opec fell in December after two months of increase, a Reuters survey showed. Field maintenance in the United Arab Emirates offset a Nigerian output hike and gains elsewhere in the group.
In Russia, oil output averaged 8.971-million barrels a day in December, below the country’s target, Bloomberg reported citing the energy ministry.
On the economic front, job openings rose in the US in November and the number of layoffs was low, while workers were reluctant to quit, the job openings and labour turnover survey (Jolts) showed.
“Robust US economic data continues to bolster the outlook for the US economy and oil demand, further supported by a larger-than-anticipated drawdown in crude inventories,” said IG market strategist Yeap Jun Rong.
“After trading within a prolonged tight range since October last year, selling pressures may have been exhausted for now, paving the way for a modest recovery,” Yeap said.
US crude oil stocks fell last week while fuel inventories rose, market sources said, citing American Petroleum Institute figures on Tuesday.
Going forward, analysts expect oil prices to be on average down this year from 2024 due in part to production increases from non-Opec countries.
“We are holding to our forecast for Brent crude to average $76 a barrel in 2025, down from an average of $80 a barrel in 2024,” BMI, a division of Fitch Group, said in a client note.
“The bearish view is being led by our fundamental data forecast, which points to an oversupply this year, with supply growth outstripping demand growth by 485,000 barrels a day.”
Reuters
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