7% Drop In The Value Of Oil And An Increase In The Value Of The Dollar
The U.S. Department of Non-farm Payroll (NFP) reported that about 517,000 jobs were added last January. That was nearly three times the forecast figure of 188,000 and up from the 260,000 job figure announced in December. The outperformance posed a new challenge for the Federal Reserve, which had hoped last year's sharp interest rate hike would cool the labor market and wages enough for inflation to return to its target.
After the U.S. jobs report for the first month of 2023 boosted the dollar, crude oil prices fell more than 7 percent last week, pushing global benchmark Brent below $80 a barrel, while the value of West Texas Intermediate (WTI) reached its lowest level of 70 dollars.
Last week, the U.S. crude oil index fell slightly more than 7.5%. After a drop of almost 3% in the last week of January, a new wave of emotions was created in the oil market in February. In the first three days of February, the value of WTI oil decreased by about 7%, and this new decrease added to its decline of almost 9% in the previous three months.
West Texas Intermediate (WTI) crude for March trading in New York fell $2.49, or 3.2 percent, to $73.39 a barrel as a rebound in the dollar on the back of the U.S. jobs report weighed on crude prices.
London-traded Brent crude, loaded for March delivery, was down $2.23, or 2.7 percent, after hitting a three-week low of $79.89. and reached the price of 79.94 dollars per barrel. In the past week, the global crude oil index fell by about 7.5% after falling nearly 3%. In fact, in the first three days of February, the Brent index decreased by 5.4% and added to its 6.5% decrease in January and December.
Craig Erlam, an analyst at the online trading platform OANDA, said: "Sentiments are volatile in the oil market. As we saw in early January, it's clear that investors' euphoria won't last long, and neither will their nerves. "This sentiment on the oil market could remain one of the key features of the first three months of the year and assure us that oil prices will remain highly volatile."
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