Benchmark oil prices eased the decline slightly in Friday trading, but remain under pressure over news that US President Donald Trump and his wife have tested positive for COVID-19.
Additional pressure on the quotes was exerted by statistics from the United States, which showed that the number of jobs in the country's economy grew weaker than expected.
The number of jobs in September 2020 increased by 661 thousand, according to data from the Ministry of Labor. In August, according to the revised data, the number of jobs increased by 1.489 million, not 1.371 million, as previously reported. Experts on average expected an increase in the number of jobs in September by 850 thousand, Trading Economics reports. Unemployment in the United States last month fell to 7.9% from 8.4% in August, while analysts expected a decline to 8.2%.
Investor sentiment also continues to be affected by concerns about demand, despite the fact that data from the US Department of Energy on Wednesday showed a decrease in oil reserves in the country for the third week in a row, writes MarketWatch. “The oil market cannot shake off concerns about demand, even as the supply of oil in the US continues to decline,” said Phil Flynn, senior market analyst at The Price Futures Group. “Due to lingering concerns about consumption, the market is less concerned about the downward trend in supply,” he said.
The Spanish government and the Madrid authorities have reached an agreement on the partial isolation of the entire city and its suburbs due to the complication of the situation with the spread of the coronavirus COVID-19, Western media reported earlier, citing the country's Ministry of Health.
Meanwhile, Paris and its suburbs from Monday can go on a “high alert”, which implies a ban on family events and the complete closure of bars, newspaper Le Figaro writes, citing French Health Minister Olivier Veran. “Expectations that in Europe in many countries will again restrict movement, undermine hopes for a recovery in demand in the short term,” said Oanda analyst Edward Moya, quoted by S&P Global Platts.
In the meantime, according to the document, which was reviewed by the agency, OPEC + needs to further cut production by 2.375 million b / d to compensate for the previously observed overproduction.
The cost of December futures for Brent oil on the London ICE Futures exchange by 18:17 Moscow time on Friday is $ 39.49 per barrel, which is $ 1.444 (3.52%) below the price at the close of the previous session. At the same time, during trading, it briefly dropped below $ 39 per barrel.
The price of futures for WTI for November at the New York Mercantile Exchange (NYMEX) by this time is $ 37.41 per barrel, which is $ 1.31 (3.38%) below the level of the previous session.
Oil prices may show a second consecutive week of decline, Trading Economics notes.