Brent, WTI shed 6% as oil heads for steepest weekly drop in 3 months: What's cooling down the commodity?
₹6,551 per barrel on the multi commodity exchange (MCX). -US job growth slowed more than expected in April and the annual wage gain cooled, data showed on Friday, prompting traders to raise bets that the US central bank will deliver its first interest rate cut this year in September. -Analysts said that the economy is slowing a little bit.
But the data gives a path forward for the Fed to have at least one rate cut this year. The US Federal Reserve held rates steady this week and flagged high inflation readings that could delay rate cuts. Higher rates typically weigh on the economy and can reduce oil demand.
-The market is repricing the expected timing of possible rate cuts after the release of softer-than-expected monthly jobs data Energy services firm Baker Hughes on Friday is due to release its weekly count of oil and gas rigs, an indicator of future crude output from the world's top producer. -Geopolitical risk premiums due to the Israel-Hamas war have faded as the two sides consider a temporary ceasefire and hold talks with international mediators. Further ahead, the next meeting of OPEC oil producers - members of the Organization of the Petroleum Exporting Countries and allies including Russia - is set for June 1.
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