Investing.com– Oil prices fell for the third-straight week after settling lower Friday as concerns over demand and cooling expectations for September rate cut weighed on sentiment.
At 14:30 ET (18:30 GMT), fell 0.3% to $79.62 a barrel, while fell 0.03% to $75.53 a barrel.
Payrolls rise by more than expected, cooling September rate-cut bets
Data released earlier Friday showed that the U.S. economy added more jobs than expected last month, with nonfarm payrolls rising by 272,000 in May, surging from April’s revised lower 165,000 release.
This was higher than the average monthly gain of 232,000 over the prior 12 months.
This stronger than expected release came after a swathe of weak U.S. economic readings had ramped up concerns over worsening demand, but also pushed up expectations that the Federal Reserve will begin trimming rates by September.
The Fed is set to and is set to keep rates steady, for now.
Lower interest rates are expected to spur an eventual recovery in economic activity, which in turn is expected to support oil prices.
Baker Hughes rig fall; oversupply concerns remain despite Saudi attempts to bring calm
Oilfield services firm Baker Hughes reported Friday its weekly U.S. rigs fell by four at 469 in the week through June 7. The fall in oil rig counts come as concerns about oversupply roiled markets this week after the Organization of Petroleum Exporting Countries and allies (OPEC+) signaled at its latest meeting, over the weekend, that it could begin scaling back its production cuts later this year.
Energy ministers of Saudi Arabia, the United Arab Emirates and Russia said on Thursday that weakness in the market could see the cartel still tighten supply, Reuters reported, citing comments made at a St. Petersburg conference.
The comments come after the OPEC+ over the weekend said it will maintain 3.6 million barrels per day of cuts until end-2024. But it also outlined detailed plans for scaling back 2.2 million bpd of cuts from October 2024 to September 2025.
(Peter Nurse, Ambar Warrick contributed to this article.)