Oil steadies on U.S. crude stock drawdown, OPEC+ output hikes delay
2024.09.05 21:46
By Nicole Jao
(Reuters) – Oil prices edged up in early trading on Friday as investors weighed a big withdrawal from inventories and a delay to production hikes by OPEC+ producers against mixed U.S. employment data.
futures rose 19 cents, or 0.26%, to $72.88 at 0010 GMT, and U.S. West Texas Intermediate crude futures were up 22 cents, or 0.32%, to $69.37.
“Crude oil edged higher as bullish signals offset the bearish sentiment that has gripped the market in recent days,” ANZ analyst Daniel Hynes said, adding that a weaker dollar was also supporting commodities prices.
Brent settled down 1 cent at its lowest close since June 2023 on Thursday and WTI was down 5 cents to the lowest close since December 2023 after data showed that U.S. crude stockpiles fell to a one-year low last week. [EIA/S]
Crude stockpiles fell by 6.9 million barrels to 418.3 million barrels last week compared with analysts’ expectations in a Reuters poll for a 993,000-barrel draw.
Also lifting prices, OPEC+ agreed to delay a planned oil production increase for October and November, the producers group said on Thursday, adding that it could further pause or reverse the hikes if needed.
The latest U.S. economic data offered some relief about the health of the economy to a market looking for clues about the path of Federal Reserve interest rate cuts.
U.S. services sector activity was steady in August, but employment gains slowed, remaining consistent with an easing labor market.
The mixed signals from job market indicators weighed on the dollar, which sagged near a one-week low ahead of crucial monthly payrolls data due later on Friday.
A weaker dollar makes oil cheaper for buyers using other currencies.
