Fundamental Comment

Brent crude prices rebound, yet set for weekly decline

Brent crude prices rebound, yet set for weekly decline

Oil prices rose on Friday trading, but are heading for the biggest weekly losses since July amid fears of falling demand due to the contraction that faces the global economic growth.

Brent crude futures rose a 0.52 percent at $58.01 a barrel, to complete its four consecutive weekly loss, while crude oil recorded high of $58.09 a barrel. While West Texas crude was 0.53 percent down at $52.83 a barrel, after the prices opened at $52.78 a barrel. 

This week, economic data showed that manufacturing activity contracted in several major economies, most notably the United States, the euro zone and the United Kingdom, raising concerns about slowing global economic growth, and therefore a decline in oil demand. 

The latest hit came on Thursday after a report showing that the U.S. ISM non-manufacturing PMI fell to a six-month low of 49.5 last month from 50.6 the previous month, compared with analysts' expectations of 50.3.  

Later in the day, markets will focus on the U.S. non-farm payrolls, which may signal American employers created 145,000 jobs in September.

Brent crude is currently headed for a weekly decline of more than 5 percent, resuming its plunge from the peak of $71.95 on September 16.

On the supply side, Saudi Energy Minister Prince Abdul Aziz bin Salman said on Thursday that the world's largest oil exporter has fully recovered oil production after last month's attacks on its facilities that cut more than 5% of global oil supplies. 

U.S. Energy Information Administration data also showed crude inventories increased by 3.1 million barrels to 422.6 million barrels in the week ended September 27. 

Baker Hughes is scheduled to announce data for U.S. oil rigs later in the day in the week ending today.

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