Oil Holds Near $44, Heads For Weekly Drop On Demand Concerns

Brent crude, the international benchmark, was up 5 cents, or 0.1%, to $44.12 at 0745 GMT, heading for a 2.3% drop this week. U.S. West Texas Intermediate (WTI) fell 3 cents to $41.34, set for the first weekly drop in five weeks.

In focus on Friday will be U.S. payrolls figures at 1230 GMT, which could be a selling trigger if an expected slowdown in hiring is steeper than forecast. The unemployment rate is expected to fall to 9.8% from 10.2%.

“Demand concerns are firmly front and centre of traders’ minds,” said Stephen Brennock of oil broker PVM. “Today’s non-farm U.S. payroll report will be closely watched and a disappointing number could be the next bearish catalyst.”

FGE analysts said rising coronavirus cases worldwide and renewed lockdowns would dash hopes of a drawdown in oil inventories for some time. The pressure remains on refiners to keep operating rates low, FGE said.