Oil to end week lower on demand concerns, easing supply woes By Reuters

By Shariq Khan

(Reuters) – Oil prices were steady in early Asian trade on Friday, but were on course to end the week lower as downward revisions to U.S. jobs data raised concerns about demand and talks to end the of the Gaza fire eased concerns about supply disruptions.

futures were down a cent at $77.21 a barrel by 0033 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 4 cents to $73.05 a barrel.

Both benchmarks rose for the first time in five sessions on Thursday on expectations that the U.S. Federal Reserve will soon cut interest rates, which helped ease some concerns about the economic outlook in the top oil consumer.

Minutes of the Federal Reserve’s July meeting, released Wednesday, showed that most Fed officials believed the central bank was on track to cut interest rates next month.

Still, Brent futures were set for a weekly decline of about 3 percent, while WTI was on track to fall nearly 5 percent.

Both benchmarks hit their lowest level since early January earlier in the week after the U.S. government sharply revised its estimate of jobs added by employers in the country this year through March.

This has raised concerns about a potential recession in the US, which will hurt demand in the largest oil-consuming nation.

Recent data from China, the biggest oil importer, also pointed to a struggling economy and slowing oil demand from refineries there.

“Buy fundamentals continue to play second fiddle to weakening sentiment, with the oil market unable to shake its recent bearish tendencies,” analysts at consultancy FGE said in a note to clients.

They added that a renewed push for a ceasefire in Gaza between Israel and Hamas helped ease supply concerns and in turn weighed on oil prices this week.

US and Israeli delegations began a new round of meetings in Cairo on Thursday to iron out differences over a proposed truce.

Some analysts say there are signs that oil could find support in the coming weeks. Global oil inventories have fallen over the past two months, indicating that supply growth is lagging behind demand, UBS analysts said on Thursday.

That should help prices recover in the coming months, pushing Brent crude back into the $85-$90 range, they said.