Oil Prices Drop Amid Weak U.S. Demand and Market Caution Ahead of Jobs Data

 Oil Prices Drop Amid Weak U.S. Demand and Market Caution Ahead of Jobs Data

Oil prices slipped on Thursday as signs of sluggish demand in the U.S. pressured the energy markets. A surprise rise in U.S. crude inventories added to bearish sentiment, raising concerns that fuel consumption is slowing in the world’s largest economy. Investors are also on edge ahead of the key U.S. non-farm payrolls report, which could influence the Federal Reserve’s interest rate policy. Brent crude and WTI both fell slightly after a short-lived rally, while poor economic signals from China—one of the biggest oil consumers—added further downside risk.

Meanwhile, expectations of increased oil supply from OPEC+ are weighing heavily on prices. The alliance is reportedly planning to boost production by over 400,000 barrels per day, even as global demand shows signs of cooling. Combined with fears of a global economic slowdown and delays in potential Fed rate cuts, traders remain cautious. Unless new catalysts emerge to support demand, crude oil markets may continue to face downward pressure in the coming weeks.