Investing.com — Oil prices edged lower on Friday, ending the week with a loss, as weaker U.S. nonfarm payrolls fueled concerns about an economy-driven slowdown in crude oil demand.
At 2:30 PM ET (1430 GMT), traded futures (WTI) fell 2.1% to settle at $67.67 per barrel, while the contract fell 2.2% to $71.06 per barrel.
Concerns about an economic slowdown in the US are resurfacing after a weak jobs report
The U.S. economy added fewer jobs than expected in August but rose from a sharply revised July figure, according to Labor Department data that could inform the Federal Reserve’s next policy decisions.
Nonfarm payrolls stood at 142,000 last month, up from a downwardly revised figure of 89,000 in July. Economists had called for a reading of 164,000, up from an initial 114,000 in July.
After the publication, expectations that the Fed would implement a deeper rate cut of 50 basis points – instead of a more superficial cut of 25 basis points – increased.
Concerns about demand come just a day after OPEC+ announced it was postponing a planned oil production increase for October and November.
US and Europe are working on sanctions against Iran
Geopolitical tensions rose on Friday as the US and Europe worked on sanctions they could impose on Iran after Tehran sent missiles to Russia.
The US had previously warned Iran against transferring missiles to Russia, saying it would mark a major escalation in Iranian support for Russia’s war against Ukraine.
