Jakarta, CNBC Indonesia – World oil prices are still on a downward path. The release of data from the United States (US) is a blow to the black gold.
On Monday (8/8/2022) at 06:59 WIB, the price of Brent oil was at US$ 94.05/barrel. Dropped 1.02% from the previous closing position.
Meanwhile, the light sweet type or West Texas Intermediate (WTI) costs US$ 88.22/barrel. Decreased 1.07%.
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In the past week, Brent and light sweet prices fell 6.04% and 6.07%, respectively. During the past month, the price fell 9.15% and 13.14%.
Last weekend, the US Bureau of Labor Statistics released the latest US employment data. In July 2022, the economy of Uncle Sam’s country created 528,000 non-farm jobs. Much higher than the previous month’s 398,000 and market expectations of 250,000.
The service sector is the largest job opening. Food and drink created 74,000 jobs, 89,000 professional business services, 13,000 corporate services, 13,000 architecture and engineering, 12,000 management and engineering consultants, 10,000 research and development, and 70,000 healthcare services.
On the one hand, this is good news. In the midst of the challenge of rising inflation, it turns out that the business world is still expansive and creates jobs. Of course, a strong capital for the US to mentas from the ‘abyss’ of recession.
But on the other hand, this data makes the market anxious that the US central bank (The Federal Reserve / The Fed) will be more confident in raising its benchmark interest rate aggressively. Because, one of the reasons the Fed tightened monetary policy is the belief that the labor market is still strong.
When the benchmark interest rate rises, let alone very high, the expansion costs of the business world and households will also rise. This keeps the pace of the economy on hold, it is not impossible that the recession will last longer.
“It’s clear that market participants see the threat of a recession as serious,” said Craig Erlam, analyst at OANDA.
Moreover, this recession occurred in the US, the world’s number one oil consuming country. Sowhen demand in the main market falls, don’t be surprised if oil prices fall.
CNBC INDONESIA RESEARCH TEAM
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