• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 8 hours The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 5 hours Greenpeace claims one oil rig is "pushing the world closer to a climate catastrophe"
  • 2 days Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 48 mins Hydrogen FTW... Some Day
  • 13 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 4 hours Middle East on brink: Oil tankers attacked off Oman
  • 1 day Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 12 hours Emmissions up, renewables nowhere
  • 1 day Plants are Dying
  • 2 days The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 2 days Never Knew Gasoline Prices were this important!
  • 2 days We Are Better Than This
  • 2 days (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020

Oil Price Slide Comes To A Halt Amid Jobs Data, Ukraine Tension

Prices for WTI and Brent oil reversed declines as positive employment numbers and geopolitical tension put upward pressure on prices. For June delivery, WTI was up 10 cents per barrel and Brent jumped 60 cents on May 2. The two benchmarks regained some lost ground after hitting a five-week low earlier this week.

The U.S. Labor Department reported that employers added 288,000 jobs in the month of April, suggesting that the U.S. economy is picking up steam. The unemployment rate also dropped to 6.3 percent, the lowest it has been since 2008. The U.S. remains the world’s largest consumer of oil, and the positive economic news pushed up oil prices.

The Russia-Ukraine crisis also created pressure on oil prices. Violence escalated to its highest point in the weeks-long standoff between Kiev and Russia on May 2, when pro-Russian rebels shot down two Ukrainian helicopters, killing three.  Following the incident, a spokesman for Russian President Vladimir Putin said, “The Kiev regime ordered combat aircraft to fire at civilian towns and villages, launching a ‘punitive operation’ and effectively destroying all hope for the viability of the Geneva agreements.” The comments could be an indication that Russia feels it has basis to invade Ukraine to protect its interests.

Related Article: AAA: Shale Boom Keeps High Gas Prices From Going Higher

Russia’s Micex Index dropped 0.5 percent on the news, and the ruble lost 0.5 percent.
Meanwhile, Russia’s energy minister said that Gazprom would reduce natural gas supplies to Ukraine in June if it fails to receive payment.

Despite positive economic news and tension in Ukraine, oil prices avoided sharper increases. U.S. crude inventories hit a record high last week, leaving oil markets well supplied. Also, Libya is expected to step up oil exports once again after a conflict with rebels kept its ports shut for months.

By Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News