WASHINGTON (dpa-AFX) - Oil prices fell sharply on Friday as hopes of an early rate cut by the Federal Reserve faded after data showed a much bigger than expected increase in U.S. non-farm payroll employment in the month of January.
Fading rate cut hopes outweighed OPEC+ group's decision to leave its production policy unchanged.
Worries about economic slowdown in China weighed as well on oil prices. The International Monetary Fund has forecast that China's economic growth would slow to 4.6% in 2024 and decline further to about 3.5% in 2028.
The dollar's sharp uptick after the jobs data, weighed on oil prices. The dollar index surged to 104.04, gaining nearly 1%, before paring some gains.
West Texas Intermediate Crude oil futures for March ended down $1.54 or about 2.1% at $72.28 a barrel. The contract shed more than 7% in the week.
Brent crude futures were down $1.49 or about 1.9% at $77.21 a barrel a little while ago.
The upbeat jobs data has raised the possibility of the Federal Reserve holding its interest rate higher for longer, and this could result in a slowdown in economic activity and a drop in demand for oil.
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