OPEC+ production increases, soft manufacturing data and disappointing private payrolls weighed on the market.
Crude oil futures rose Friday but are on pace for a third straight weekly loss on worries that demand may be softening even asafter OPEC+ members announced they will start phasing out 2.2 million barrels per day in production cuts starting in October. Poor U.S. manufacturing data and weak private payrolls also weighed on the market.over the past two days on hopes that lower rates might boost demand, the two crude benchmarks are still down more than 1% for the week.
Still, oil market analysts have widely described this week's sell off as an overreaction, noting that the OPEC+ production increase does not start until October. In the meantime, oil balances should tighten as the cuts remain in place during the summer driving season when demand typically rises, according to JPMorgan.