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Crude oil futures fell for a fourth straight session on Wednesday, as a downward revision to U.S. jobs data outweighed a rally driven by a larger-than-expected drawdown in U.S. crude inventories.
The United States added 818,000 fewer jobs than previously reported. From April 2023 to March 2024, the Labor Department’s revised estimate of employment growth showed the economy gained about 2.1 million jobs in that period instead of the previously reported gain of 2.9 million jobs.
The market is now shifting from pricing in a stronger economy to Hard landing possible“This is why oil prices have been reluctant to move higher,” Phil Flynn, an analyst at Price Futures Group, told Reuters.
We already have Growing concerns “The Chinese economy will cool with the weather which will take a lot of demand out of the global oil market, a lot of Europe is in question… so the US data is added to the list,” said Gary Cunningham, director of research at Tradition Energy. Market monitoring.
The revised jobs data offset support from a larger-than-expected drawdown in U.S. oil inventories, which fell by 4.6 million barrels to 426 million barrels last week, along with declines in gasoline and distillate stocks, the Energy Information Administration said.
“Prioritizing the dismal employment numbers over the seemingly upbeat EIA report tends to highlight fragility “The complex represents 10% of the world’s total oil production,” Ritterbusch said, according to Dow Jones.
US light crude oil futures (CL1:COM) for October delivery expired -1.7% To $71.93 a barrel, its lowest close since January 10, Brent crude (CO1:COM) ended October trading at $71.93 a barrel. -1.5% to $76.05 a barrel, its lowest closing level since Jan. 2.
US natural gas prices (NG1:COM) also fell, with the Nymex September contract closing at $1.50. -0.9% to $2.177/MMBtu.
Exchange-traded funds:NYSEARCA: Use), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (USOI), (UGA), (UNG), (BOIL), (KOLD), (UNL), (FCG)
Gasoline futures (XB1:COM) fell to their lowest level since May 3, 2023, as the Nymex monthly contract for September delivery expired. -0.6% to $2.2497/gallon.
The result for U.S. motorists is that pump prices fell to a five-month low of $3.398 a gallon on Wednesday, According to AAAwhere the national average has fallen on 24 of the past 26 days.
This trend may provide Promote timely elections For Vice President Kamala Harris, pump prices are one of the most visible measures of inflation for voters.