Oil prices drop on the back of slow US job growth
Oil prices fell by around 1 per cent on Friday on the back of news that US job growth was a lot slower than expected, reigniting concerns that the economy was slowing and that there was a lack of demand for oil.
An increase in US oil supply also unsettled the market as Brent crude oil ended the day 0.8 per cent down, at $65.74 per barrel, but it was up 1 per cent for the week.
WTI crude futures fell 1 percent to settle at $56.07 a barrel but still ended 0.5 percent higher for the week.
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It comes after US job growth almost stalled in February at a year-and-a-half low.
Just 20,000 jobs were created, well below the previous month and expectations, dragging down stock markets as well as oil futures.
So far this year oil prices have been supported by supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC).
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Crude oil production in Saudi Arabia fell to 10.136m barrels per day (bpd) for February according to Reuters.
Sanctions against Iran and Venezuela have also helped oil futures, while US crude production has increased by more than 2m bpd in the past year to 12.m bpd, making America the world’s biggest producer.