Oil prices continued their downtrend market as a reaction of disappointing US job market data.
The labour market showed fewer jobs added than expected and a rise in unemployment, heightening negative sentiment regarding the US economy.
Worries about a potential US recession outweighed concerns about supply disruptions from rising tensions in the Middle East.
This marked the fourth consecutive week of losses for both Brent crude and WTI crude, the longest losing streak since November last year.
Additionally, the bearish sentiment has been exacerbated by the reduced diesel consumption in China and OPEC+’s plan to phase out production cuts starting in October. An increase in OPEC oil output in July, largely due to higher Saudi Arabian supply, also contributed to the downward pressure. Although geopolitical tensions in the Middle East initially raised concerns about potential disruptions in oil supplies, these fears have diminished compared to the concerns on the economy, leading to prices settling at multi-week lows
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