Price action
Upon settlement, Brent crude futures fell $1.92, or 2.3 percent, to $84.89 per barrel, while US West Texas Intermediate crude futures fell $1.95, or 2.4 percent, to $80.51 per barrel.
The two crude oil prices ended the week lower, as Brent crude suffered losses of about 4.8 percent, and American crude fell by about 6 percent.
Meanwhile, official data showed Friday that job growth in the United States slowed more than expected in October, and wage inflation also slowed, indicating a deterioration in labor market conditions.
The data may reinforce the view that the US Federal Reserve does not need to raise interest rates further.
The Council kept interest rates unchanged Wednesday, while the Bank of England kept interest rates at their highest level in 15 years. Policy stabilization maintained support for oil prices as some risk appetite returned to the markets.
A private sector survey showed today that services activity in China grew at a slightly faster pace in October, but sales grew at the weakest pace in ten months and employment activity stagnated as business confidence declined.
On the supply side, analysts’ expectations indicate that Saudi Arabia will once again confirm the extension of its voluntary production cut by one million barrels per day until December.
Regarding the escalation in Gaza, Hassan Nasrallah, Secretary-General of the Lebanese Hezbollah group, warned on Friday that the expansion of the conflict in the Middle East was possible, but he did not pledge to open another front on the Israeli border with Lebanon, during his first speech since the outbreak of the war between Israel and the Palestinians.
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