Oil Drops $2 on OPEC+ Output Risk and Weak US Jobs Data
Three sources familiar with internal OPEC+ deliberations indicated the alliance could finalise an agreement as soon as Sunday to raise output by 548,000 barrels per day (bpd) in September.
Oil prices fell sharply on Friday, shedding around $2 a barrel amid mounting speculation that OPEC and its allies may agree to a fresh production increase, while a disappointing US employment report stoked demand concerns.
Brent crude futures settled at $69.67 a barrel, down $2.03 or 2.83%, while US West Texas Intermediate (WTI) dropped $1.93, or 2.79%, to close at $67.33. Despite the day’s losses, Brent ended the week up nearly 6%, and WTI advanced 6.29%.
Three sources familiar with internal OPEC+ deliberations indicated the alliance could finalise an agreement as soon as Sunday to raise output by 548,000 barrels per day (bpd) in September. A fourth source suggested a smaller hike remains under discussion.
Sentiment also took a hit from weaker-than-expected US labour data. The US economy added just 73,000 jobs in July, well below forecasts, pushing the unemployment rate up to 4.2% from 4.1%.
"We can blame US President Donald Trump with the tariffs or the Federal Reserve for not raising interest rates," said Phil Flynn, senior analyst at Price Futures Group. “It looks like the Fed misjudged their decision on Wednesday,” when policymakers opted to hold rates steady—a move that drew criticism from Trump and congressional Republicans.
Traders also weighed the geopolitical risk premium after Trump threatened to impose 100% secondary sanctions on buyers of Russian oil, targeting key consumers China and India. JP Morgan warned the penalties could put up to 2.75 million bpd of Russian seaborne exports at risk, raising concerns over future supply disruptions.