Oil prices, which rose last week with increasing tension in the Middle East, continue to climb on the first trading day of the week with better-than-expected employment data in the US, while US President Joe Biden’s statements discouraging Israel from targeting Iranian oil fields caps upward price movements.
International benchmark Brent crude rose by 0.78% to $78.49 per barrel at 10.43 a.m. local time (0743 GMT), up from the previous session’s close of $77.88.
US benchmark West Texas Intermediate (WTI) increased by 0.94% to $74.76 per barrel after closing at $74.06 in the prior session.
Employment data in the US, the world’s largest oil consuming country, revealed that the economy is improving, increasing the risk appetite in global markets.
Non-farm employment in the country increased by 254,000 in September, exceeding expectations, while the unemployment rate decreased from 4.2% to 4.1% .
Also, employment growth last month reached the highest level in 6 months and the unemployment rate fell to the lowest level of the last 3 months.
Chicago Fed President Austan Goolsbee said the end of the dockworkers’ strike is good news for the country’s economy.
Uncertainty over the US Federal Reserve’s (Fed) next steps continues to impact oil prices.
Goolsbee said the vast majority of Fed policymakers think interest rates will fall a lot next year. It is considered certain that the Fed will cut interest rates by 25 basis points in November.
It is expected that the rate drop in the US will weaken the dollar against other currencies, boosting oil demand.
Meanwhile, On Oct. 3, US President Biden said that the US and Israel were discussing potential strikes on Iranian oil facilities after Tehran launched nearly 200 ballistic missiles at Israel, supporting upward movement of the prices.
However, Biden’s statements discouraging Israel from targeting oil fields in Iran on Oct. 4, put downward pressure on prices.
‘If I were in their shoes I’d be thinking about other alternatives than striking oil fields,’ Biden told reporters at the White House.
