U.S. Economic Data Shifts Attention From Steady Oil – 6 October, 2022

Oil prices steadied on Friday ahead of key U.S. economic data after rising over 1% in the last session on cuts to OPEC+ production targets. Brent crude futures shed 11 cents to $94.31 per barrel. West Texas Intermediate crude futures fell 5 cents to $88.40 per barrel, having hit $89.37 per barrel earlier, its highest since Sept. 14. Both benchmarks were headed for weekly gains, fueled by production cut announcement by OPEC+. A stronger dollar added pressure on oil prices after Federal Reserve speakers signaled further aggressive central bank policy tightening. OPEC+ announced the largest cut since 2020 and comes ahead of a European Union embargo on Russian oil. The decision would squeeze supplies in an already tight market, adding to inflation. Markets are keenly watching the U.S. non-farm payrolls report due later on Friday, with economists forecasting 250,000 jobs to have been added last month, compared with 315,000 in August.