Oil prices rose by about 1% during trading on Monday, September 9, amid anticipation of a possible hurricane from the US Gulf Coast, and in light of the markets recovering from a wave of selling following the weaker-than-expected US jobs data on Friday.
The US National Hurricane Center said the weather system in the southwestern Gulf of Mexico is expected to develop into a hurricane before reaching the northwestern US Gulf Coast. The US Gulf Coast accounts for about 60% of US refining capacity.
Crude oil posted its biggest weekly decline in 11 months amid a gloomy economic outlook, analysts at ANZ Bank said in a note. Weak U.S. jobs data on Friday raised concerns about weak oil demand in the world's largest consumer.
Brent had fallen 10% on the week at Friday's close, its lowest since December 2021, while West Texas Intermediate crude fell 8% to its lowest close since June 2023.
A report from the U.S. Labor Department showed that the number of nonfarm jobs in the United States increased by about 142,000 jobs in August, compared with economists’ estimates in a Reuters poll of 160,000 jobs. The report indicated that the July data was revised down to 89,000 jobs.
In terms of trading, Brent crude futures rose by about 1% to $71.75 a barrel. US crude futures also rose by 1% to $68.36 a barrel.
