Oil heads for weekly loss
Business
Oil heads for weekly loss
LONDON (Reuters) - Oil prices fell on Friday, on track for a weekly loss as supply concerns driven by Middle East tensions eased, while jobs data raised expectations the US Federal Reserve has hiked interest rates in the world's biggest oil-consuming economy.
Brent crude futures were down $1.21, or 1.4%, to $85.64 a barrel at 1431 GMT, while US West Texas Intermediate crude futures fell $1.25, or 1.5%, to $81.21 a barrel.
Both benchmarks gained more than $2 a barrel on Thursday but were on track to lose more than 5% on the week.
But geopolitical concerns remained in focus.
"The oil market will be watching for an escalation of tensions, particularly on the Lebanese border, as Hezbollah attacks increase," City Index Fiona Cincotta said.
Hezbollah leader Sayyed Hassan Nasrallah, speaking for the first time since the Israel-Hamas war erupted, warned on Friday that a wider conflict in the Middle East was a realistic possibility.
He said that a further escalation in Lebanon, which could expand regional tensions significantly, was contingent on further escalation in Gaza.
Meanwhile, US job growth slowed more than expected in October, official data showed on Friday, while wage inflation cooled, pointing to an easing in labour market conditions.
The data bolstered the view that the US Federal Reserve need not raise interest rates further.
The Fed held interest rates steady this week, while the Bank of England kept rates at a 15-year peak, supporting oil prices as some risk appetite returned to markets.
But a private sector survey on Friday showed that while China's services activity expanded at a slightly faster pace in October, sales grew at the softest rate in 10 months and employment stagnated as business confidence waned.
The data followed a reading from the National Bureau of Statistics on Wednesday that showed China's manufacturing activity unexpectedly contracted in October.
On the supply side, Saudi Arabia is expected to reconfirm an extension of its voluntary oil output cut of 1 million barrels per day through December, based on analyst expectations.
