Oil sheds 1%, posts weekly loss on soft China demand even as OPEC extends supply cuts; Brent back to $82/bbl
₹6,462 per bbl, having swung between ₹6,427 and ₹6,525 per bbl during the session, against a previous close of ₹6,459 per barrel. Also Read: Explained | Why did OPEC+ members extend oil output cuts to mid-2024 -China's imports of crude oil rose in the first two months of the year compared with the same period in 2023, but they were also weaker than the preceding months, data showed on Thursday, continuing a trend of softening purchases by the world's biggest buyer. -On the supply side, OPEC members led by Saudi Arabia and Russia agreed on Sunday to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter, giving extra support to the market amid concerns over global growth and rising output levels.
-Oil markets have absorbed in signals on the timing of possible rate cuts in the US and European Union in the previous two sessions. Lower interest rates could increase oil demand by boosting economic growth. -US job growth rose by 275,000 new nonfarm payrolls in February, according to the Bureau of Labor Statistics.
Unemployment rate also rose and wage growth decelerated, indicating that the US economy could be slowing which kept on the table an anticipated interest rate cut in June from the Federal Reserve. -US 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. He added that achieving the two per cent target is still not assured.
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