Crude oil prices hovered near $71 on Thursday, as the market reacted to the latest U.S. labor data showing continuing jobless claims hitting a three-year high. The rise in unemployment claims sparked concerns about a potential slowdown in the U.S. economy, raising questions about future demand for energy.
The data, which reflects sustained weakness in the U.S. labor market, is seen by some analysts as a signal that the Federal Reserve’s tightening cycle may be nearing an end. However, the mixed economic outlook has kept oil prices in check, with weaker demand expectations balancing against tighter global supply.
Despite the rise in jobless claims, crude prices remained stable due to supply-side factors, including ongoing production cuts from OPEC+ and geopolitical tensions in key oil-producing regions. Market participants are now closely watching for any further signs of economic slowdown that could impact demand forecasts in the coming months.
With oil prices hovering around $71, traders remain cautious as they weigh the impacts of weakening economic indicators against the backdrop of constrained supply, which continues to support the market at current levels.
