Global oil prices declined by 3% on Friday, marking a second consecutive week of losses amid renewed concerns over slowing economic growth and surging U.S. crude output. Brent crude futures fell to $64.45 per barrel, while U.S. West Texas Intermediate (WTI) dropped to $54.91, according to Reuters reports.
Weak U.S. job growth in February, which added only 20,000 positions, intensified fears of reduced energy demand. The data coincided with a contraction in construction and other sectors, contributing to broader market declines. Analysts linked the downturn to persistent economic uncertainty, with Gene McGillian of Tradition Energy noting, "The labor report has rekindled focus on demand concerns."
European Central Bank President Mario Draghi’s remarks about the region’s "continued weakness" further weighed on investor sentiment. Meanwhile, China’s February exports fell 21% year-on-year, the steepest decline in three years, though crude imports remained above 10 million barrels per day.
OPEC-led production cuts initially supported prices, but U.S. sanctions on Iran and Venezuela, combined with rising domestic output, created conflicting pressures. U.S. crude production hit 12.1 million barrels per day in 2018, making it the world’s top producer. However, the oil drilling rig count fell to a five-month low, signaling potential supply constraints.
Analysts at Jefferies highlighted that U.S. output growth has been driven by shale production, bolstered by investments from Exxon Mobil and Chevron. Despite these factors, market volatility persisted as traders balanced OPEC cuts against rising American supply.
