On Thursday, March WTI crude oil closed down $1.85 (2.84%) at $63.50 per barrel, while March RBOB gasoline fell $0.0386 (1.96%). This decline followed a rise in the dollar index to a 1.5-week high and easing tensions between the US and Iran, as Iran confirmed nuclear talks would occur on Friday in Muscat, Oman.
Notably, weaker-than-expected US labor market data also contributed to the bearish outlook for crude prices. Job cuts increased by 117.8% year-over-year to 108,435, marking the largest January job losses since 2009, while weekly initial unemployment claims rose by 22,000 to an eight-week high of 231,000. Meanwhile, the JOLTS report revealed job openings fell by 386,000 to a 5.25-year low of 6.542 million.
As of January 30, US crude oil inventories were 4.2% below the seasonal five-year average, with production dropping 3.5% week-over-week to 13.215 million bpd. Baker Hughes reported 411 active US oil rigs, maintaining levels slightly above the 4.25-year low of 406 rigs reached in December 2022.
