Oil futures fell for a fourth straight day on Wednesday as a decline in U.S. payrolls data outweighed gains from a bigger-than-expected decline in U.S. crude inventories.
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The US added 818,000 fewer jobs than previously reported April 2023-March 2024, as the Labor Department’s revised estimate of job growth showed the economy gained about 2.1 million jobs during that period, instead of the previously reported gain of 2.9 million jobs.
“The market is now moving from pricing in a stronger economy to potential hard landing“That’s why oil prices are reluctant to rise,” Phil Flynn, an analyst at Price Future Group, said, according to Reuters.
“We already have Growing concerns that China’s economy is cooling as the weather pulls a lot of demand out of the global oil market, and much of Europe is at risk… so the U.S. data just added itself to the list,” said Tradition Energy research director Gary Cunningham Market observation.
The revised payrolls data offset support from a bigger-than-expected decline in U.S. crude inventories, which fell 4.6 million barrels last week to 426 million barrels, the Energy Information Administration said. A decline in gasoline and distillate inventories also contributed to the decline.
“Prioritizing gloomy employment data over seemingly optimistic EIA report” tended to emphasize fragility With [oil] “It’s complicated,” Ritterbusch said, according to Dow Jones.
Nymex (CL1:COM) Crude Oil Delivery for October Completed -1.7% to $71.93/bbl, the lowest price since January 10, and October Brent crude (CO1:COM) ended -1.5% to $76.05/bbl, the lowest close since January 2.
The price of US natural gas (NG1:COM) also fell, with the Nymex contract for September being closed -0.9% to $2.177/MMBtu.
Gasoline futures (XB1:COM) fell to their lowest since May 3, 2023, with the Nymex next-month contract for September delivery ending -0.6% to $2.2497/gal.
The result for American drivers is that prices at the pump fell to a five-month low of $3,398/gallon on Wednesday. according to AAAas the national average has fallen in 24 of the last 26 days.
This trend may provide current electoral impulse for Vice President Kamala Harris, because gas prices are one of the most visible indicators of inflation for voters.
