Brent crude oil sinks to 8-month low, sluggish US employment statistics fuel demand concerns

Crude oil futures fell sharply on Friday, ending a volatile week. This is because concerns about the demand outlook between China and the US were overshadowed by bullish data on US inventories announced at the beginning of the week and concerns about the escalation of the Middle East dispute.

The number of non-farm payrolls in the US in July was 0.114 million, far below expectations, the unemployment rate rose from 4.1% to 4.3%, and the average hourly wage fell.

Disappointing labor market data followed a sluggish manufacturing report released Thursday.

Even with data released this week, manufacturing activity in China has declined, and since import volumes and refinery operating rates were lower than the same month last year, concerns about growth in demand are growing.

As the situation in the Middle East becomes tense, the Hamas political leader was murdered in Tehran, and Iran promised retaliation against Israel, so the market is nervous.

The September Nymex crude oil period (CL1: COM) was 73.52 dollars/barrel of -3.6%, which is the low since 6/4, and the monthly period before October Brent (CO1:COM) was 76.81 dollars/barrel of -3.4%, which is the low since 1/10, -4.3% compared to a week ago.

The Nimex Natural Gas (NG1: COM) September term ended flat on Friday, but this week it fell 4.1% to 1.967 dollars/mmBTU.

However, concerns about declining oil demand outweigh rising risks to supply.

“The demand risks associated with the impending recession are far more significant than the supply threats brought about by the current geopolitical climate, and the fundamental balance is currently tending bearish,” Seventh Report Research Co-Editor Tyler Rich told MarketWatch.

Energy (NYSEARCA: XLE) represented by the Energy Select Sector SPDR Fund ETF was one of the stocks with the worst performance in the stock market this week, at -4.1%.

Top 5 rates of increase in energy and natural resources over the past 5 days:

Eco Wave Power (WAVE) +19.1%,

Oil States International (OIS) +12.4%,

ZIM Integrated Shipping (ZIM) +11.5%,

Transalta (TAC) +9.7%,

Martin Midstream Partners (MMLP) +9.4%.

Top 10 depreciation rates for energy and natural resources over the past 5 days:

Nano Nuclear Energy (NNE) -40.1%,

Ametis (AMTX) -30.6%,

TPI Composite (TPIC) - 24.9%,

Endeavour Silver (EXK) -22.2%,

Chart Industries (GTLS) -21.8%,

ASP isotopes (ASPI) -21.4%,

Nuskale Power (SMR) - 20.8%,

Comstock Resources (CRK) -20%,

Century Holdings (CTRI) -19.6%,

MP Materials (MP) -19.6%.

Source: Barchart.Com