Oil prices post sharp weekly losses, fall to 15-month lows

Oil prices fell more than 2 percent to end with a sharp weekly loss after U.S. employment rose less than expected in August, as demand concerns outweighed a decision by OPEC+ producers to delay increasing supply.

The European benchmark Brent crude oil fell by 1.63 dollars to 71.06 dollars, the American West Texas Intermediate (WTI) crude oil lost 1.48 dollars to 67.67 dollars. For the week, Brent crude oil lost nearly 9 percent and WTI crude oil lost nearly 8 percent.

For its part, the Mexican export mix fell by 1.38 dollars to 63.25 dollars per barrel, according to the price published by Petróleos Mexicanos (Pemex).

This week, the price of Mexican crude oil fell by 6.5 dollars, or 9.31 percent, and is at its lowest level since June 27, 2023, when it closed at 62.63 dollars per barrel.

U.S. government data on Friday showed employment rose less than expected in August, but the drop in the unemployment rate to 4.2 percent in August from 4.3 percent in July suggested an orderly slowdown in the labor market was continuing and probably did not justify a big interest rate cut by the Federal Reserve this month.

“The jobs report was a bit weak and suggested the U.S. economy is in decline,” said Bob Yawger, chief executive of Mizuho Energy Futures.

Concerns about Chinese demand also continue to put pressure on oil prices, Yawger added.

Brent crude hit its lowest level since June 2023 on Thursday, despite a drawdown in U.S. crude inventories and a decision by OPEC+ to delay planned oil production increases.