Global oil markets declined sharply on Friday, with Brent crude futures dropping 2.2% to $64.86 per barrel and U.S. West Texas Intermediate (WTI) falling 2.4% to $55.28 amid renewed concerns about economic growth and energy demand.
Weak U.S. employment data exacerbated market anxieties, showing only 20,000 jobs added in February amid contractions in construction and other sectors. This fueled broader worries about slowing global demand, with European Central Bank President Mario Draghi warning of persistent economic weakness in the eurozone.
China’s February exports fell 21% year-on-year, the steepest decline in three years, while imports dropped 5.2%. Despite this, crude oil imports remained above 10 million barrels per day, though analysts cautioned that slowing economic growth could eventually reduce fuel consumption.
OPEC-led production cuts provided some support, with Saudi Arabia reporting February output of 10.136 million barrels per day. However, U.S. oil production surged to 12.1 million barrels per day in 2019, making it the world’s top producer, while sanctions on Iran and Venezuela also influenced market dynamics.
U.S. energy firms reduced oil rig counts for a third consecutive week, reaching a 10-month low, according to General Electric’s Baker Hughes. Meanwhile, investment in shale production by major firms like Exxon Mobil and Chevron continued to drive output growth since 2018.
