Oil recovered some recent losses as signs that the labor market is cooling calmed fears that the Federal Reserve will take a more forceful rate hike path.
(Bloomberg) — Oil recovered some recent losses as signs that the labor market is cooling calmed fears that the Federal Reserve will take a more forceful rate hike path.
A gain in weekly jobless claims reported Thursday outstripped expectations, indicating economic softness that could prompt the Fed to shy away from aggressive rate hikes that could provoke a sharper downturn. The data also weakened the dollar, making it more expensive to purchase the commodity.
The lift from the labor market data was limited amid persistent headwinds, including a tepid economic forecast from China and increased US stockpiles this year.
“For weekly jobless claims to really start to move the needle, they need to start trending a lot higher,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.
Still, some prominent market watchers have a bullish outlook, with top trader Trafigura Group expecting Brent to hit $90 a barrel by midyear.
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