Oil prices continue to rise due to geopolitical tensions: Oil prices rose on Friday, with Brent crude and U.S.
West Texas Intermediate crude increased by more than a dollar per barrel,
as markets awaited developments indicating escalating tensions between Israel and Iran, which could lead to a shortage in oil supplies.
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Continued strength of the U.S. labor market
Recovery of the dollar index after positive U.S. labor market data
Oil prices continue to rise due to geopolitical tensions
Continued strength of the U.S. labor market
Last Friday, the U.S. jobs report was released, showing an addition of 303,000 jobs,
surpassing expectations of 212,000 jobs. This exceeded expectations and
gave the Federal Reserve flexibility in its decisions regarding interest rate cuts.
The unemployment rate fell to 3.8%, compared to 3.9% in the previous period.
The hourly wage rate remained steady at 0.3%, while the previous reading was revised to 0.2%.
Jobs significantly influence the Federal Reserve’s decisions on interest rate cuts.
In his recent remarks, Jerome Powell, the Federal Reserve Chairman,
pointed to the continued strength of the U.S. labor market.
A strong labor market is an important factor in slowing the pace of inflation,
as the continued low unemployment rates support strong consumption and sustainable demand,
thereby enhancing inflation stability instead of reducing it as the Federal Reserve prefers.
Recovery of the dollar index after positive U.S. labor market data
The dollar rose last Friday after data indicated a higher-than-expected increase in new jobs in the United States for March.
This might delay the Federal Reserve’s decision to cut interest rates this year.
According to the U.S. Department of Labor’s report released on Friday, non-farm payrolls increased by 303,000 jobs last month.
Expectations were for a 200,000 job increase in March, with estimates ranging between 150,000 and 250,000 jobs.
The dollar index rose by 0.048 percent to 104.27 points in the last trading session, after reaching 104.690 points.
The dollar experienced a volatile week, declining from a five-month high to a two-week low
due to an unexpected slowdown in the growth of the U.S. services sector, increasing expectations for an interest rate cut.
Oil prices continue to rise due to geopolitical tensions
Oil prices rose on Friday, with Brent crude and U.S. West Texas Intermediate crude increasing by more than a dollar per barrel,
as markets awaited any developments indicating escalating tensions between Israel and Iran,
which could lead to a shortage in oil supplies.
Brent crude price increased by 52 cents or 0.57 percent to $91.17 per barrel at the end of trading,
and the price of U.S. West Texas Intermediate crude increased by 32 cents or 0.37 percent to $86.91 per barrel.
Both crudes recorded their highest levels since October, at the end of the trading session on Thursday.
Oil prices are on track to achieve more than four percent gains last week,
continuing to rise for the second consecutive week.
This comes after Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC),
threatened to retaliate against Israel following an attack that killed several senior Iranian military officers.
Regarding Russia, a NATO official reported on Thursday that ongoing drone attacks
by Ukraine on Russian refineries could have disrupted more than 15 percent of Russia’s energy output,
affecting the country’s fuel production.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies,
including Russia, within the OPEC+ alliance, have kept their oil supply policy unchanged this week,
pressing some countries to increase compliance with production cuts.
Oil prices continue to rise due to geopolitical tensions.