Commodity News
HeadLine : Oil On Track for Weekly Gain After Stumbling on Demand Doubts
Date : Aug 7 2020
Oil headed for its best week since early July, despite stumbling ahead of U.S. jobs numbers that are expected to paint a gloomy picture of the labor market in the world’s biggest economy. Futures in New York were little changed, after slipping 0.6% on Thursday. The U.S. payrolls report for July is forecast to show a slowdown in job gains, underlining weak prospects for a demand recovery as lawmakers bicker over fresh stimulus measures. Still, U.S. crude futures are up more than 4% on the week, lifted by a further decline in American oil stockpiles. Iraq will cut production in August by an additional 400,000 barrels a day to compensate for missing its production target in previous months, the state oil-marketing organization Somo said Thursday. The move comes as Saudi Arabia cut pricing to Asia and Europe less than expected and left prices for the U.S. unchanged at the highest levels in months. Oil futures in New York pulled back after testing the upper bound of their recent trading range, where they’ve struggled to rally far beyond $40 a barrel. U.S. crude stockpiles falling for two straight weeks and a weaker dollar have provided support for prices, but rising coronavirus cases are continuing to weigh on sentiment. In what may be the last remaining hope for spurring U.S. demand in the waning days of the summer driving season, Democrats and Republicans are trying to push forward a virus relief package. President Donald Trump said he expects to sign orders on Friday or Saturday extending enhanced unemployment benefits and imposing a payroll tax holiday.

Source: Investing.com
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