Oil Prices Decline Amid Economic Concerns

Investing.com — Oil prices settled lower Friday, ending the week with a loss as weaker U.S. nonfarm payrolls stoked concerns about an economic-led slowdown in crude demand.

At 2:30 p.m. ET (1430 GMT), U.S. crude futures (WTI) fell 2.1% to settle at $67.67 a barrel, while Brent contracts fell 2.2% to $71.06 per barrel.

U.S. Economic Slowdown Worries Resurface After Weak Jobs Report

The U.S. economy added fewer jobs than anticipated in August, rising from a sharply revised July figure, according to Labor Department data that could impact the Federal Reserve's next policy decisions.

Nonfarm payrolls came in at 142,000 last month, an increase from a downwardly revised 89,000 in July. Economists had predicted a reading of 164,000.

Following the release, bets increased that the Fed would introduce a deeper 50 basis-point rate cut, rather than a shallower 25 basis-point reduction.

Concerns about demand arose just a day after OPEC+ announced an agreement to postpone a planned increase in oil production for October and November.

U.S. and Europe Working on Iran Sanctions

Geopolitical tensions increased Friday as the U.S. and Europe began working on sanctions against Iran following Tehran's missile shipments to Russia.

The U.S. previously warned Iran that transferring missiles to Russia could represent a significant escalation in Iran's support for Russia's war against Ukraine.