Oil Prices Decline Amid Economic Concerns

Oil prices settled lower on Friday, ending the week with a loss due to weaker U.S. nonfarm payrolls, raising concerns about a slowdown in crude demand.

At 2:30 p.m. ET (1430 GMT), U.S. crude futures (WTI) dropped 2.1% to $67.67 a barrel, while Brent contracts fell 2.2% to $71.06 per barrel.

U.S. Economic Slowdown Worries Resurface After Weak Jobs Report

The U.S. economy added fewer jobs than anticipated in August, although it was higher than a revised July figure, according to Labor Department data that may influence the Federal Reserve’s policy decisions.

Nonfarm payrolls reached 142,000 last month, rising from a downwardly revised 89,000 in July. Economists had predicted a reading of 164,000, up from the initial 114,000 for July.

Following the report, speculation increased that the Fed might implement a deeper 50 basis-point rate cut instead of a shallower 25 basis-point reduction.

Concerns about demand arise just after OPEC+ announced a postponement of a planned increase in oil production for October and November.

U.S., Europe Working on Iran Sanctions

Geopolitical tensions escalated on Friday as the U.S. and Europe began discussing sanctions against Iran following reports that Tehran sent missiles to Russia. The U.S. had previously warned that such transfers would significantly escalate Iran’s support for Russia’s actions in Ukraine.