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Wednesday, February 8, 2023

Strong U.S. jobs data, OPEC+ optimism may see oil Jump to $50

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America’s strong labor market which defied forecasts for a Depression-style surge in unemployment by rebounding in May, and optimism about potential OPEC+ members extending cuts could see oil push to $50 per barrel.
Analysts say this is a signal the world’s largest economy is picking up faster than anticipated from the coronavirus-inflicted recession.
A key gauge of payrolls rose by 2.5 million, trouncing forecasts for a sharp decline following a 20.7 million tumble the prior month that was the largest in records back to 1939, according to Labor Department data Friday.
The jobless rate fell to 13.3% from 14.7%.
Stocks immediately entered a risk mode with the Dow jumping some 900 points as at the time of reporting by MoneyCentral.
With Americans going back to work, driving and flying again, demand for Oil is also picking up which could see Brent crude hit $50 a barrel, quicker than analysts had earlier forecast.
Brent crude futures were trading up 5.1 percent to $42 per barrel.
President Donald Trump in a news conference at 10 a.m. in Washington monitored by MoneyCentral attributed the positive numbers to his policies and warned against electing Democrats in the November general elections.
The Organization of Petroleum Exporting Countries will meet by video conference on Saturday at 1 p.m. London time, followed by a conference with their OPEC+ allies two hours later, delegates said.
OPEC+ is set to extend production cuts to hold up the oil market after a breakthrough in negotiations, with the Saturday meeting being held to sign off on the deal.
The agreement, once ratified, will prolong the record OPEC+ production curbs for another month until the end of July, instead of easing them as previously planned.
This could see oil extend its rally to test $50 a barrel as early as June.

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