The price of oil reached its highest levels in two months

oil prices reached, on Friday, July 7, their highest level in two months, after the slight easing in the US labor market allay fears that the Federal Reserve (Fed) raises rates to the point of stagnating the economy.

(See: Latin American oil production has risen 9% due to the conflict in Ukraine).

Brent crude of the North Sea, for delivery in September, increased 2.54%, to $78.47, while its US equivalent, the barrel of West Texas Intermediate (WTI), for delivery in August, gained 2.86%, $73.86.

Job creation remained strong but rose less than expected to 209,000 jobs in June.

“This suggests that the US Federal Reserve (Fed) may not keep interest rates high for as long as expected, alleviating the impact this could have on energy demand.said Andy Lipow of Lipow Oil Associates.

(See: Gas production fell 4.2% and oil production rose 3.6% during May).

The oil market remains, however, concerned about the persistent supply cuts, they are raising prices.

On Tuesday, July 4, Saudi Arabia and Russia, two of the main crude oil producers announced cuts. And the commercial crude oil reserves of USA they fell 1.5 million barrels last week after hitting 9.6 million barrels the week before.

(See: ‘The world cannot and will not be able to live without oil,’ says Opec).

Faced with what appears to be a supply deficit, Numerous economic indicators simultaneously fuel lingering fears of a weakening of demand.

In China, activity in services grew in June, but at one of the weakest rates of the year, the latest sign that the country’s post-covid recovery is losing steam.

(See: Negotiation or auction? Dilemma facing the subsidiary of the oil company PDVSA).

AFP