In China, factory activity unexpectedly contracted in April as orders fell and domestic demand weakened.
“It was a double whammy for oil prices,” said John Rong Yep, market analyst at IG in Singapore, noting that “the resumption of US banking crises has raised fears of a spillover and more talk of a recession, while a sudden contraction in manufacturing activities in China indicates a drop in optimism about the outlook for oil demand.
price movements
And at 1533 GMT, Brent crude was up $2.61, or 3.37%, at $74.91 a barrel, while US West Texas crude was up $2.70, or 3.52%, to 70.98 dollars a barrel, after posting losses for four consecutive days. He dropped the contract to its lowest level since late 2021.
Brent crude is expected to end the week down around 5.5%, while WTI is expected to register a decline of 7%.
However, Kelvin Wong, senior market analyst at OANDA, Singapore, said prices had received some support from expectations of a possible supply cut at the upcoming OPEC+ meeting in June.
Friday’s data showed U.S. employers hired more in April and raised wages, a sign of continued strength in the labor market, which could push the U.S. Federal Reserve to keep rates high for a longer period.
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