Brent crude settled at $65.50, down $1.49 (−2.22%), while U.S. West Texas Intermediate (WTI) closed at $61.87, down $1.61 (−2.54%).
The selloff came amid a “perfect storm” of bearish signals, analysts said. U.S. payrolls increased by only 22,000 in August, far below forecasts for 75,000 and down sharply from July’s upwardly revised 79,000. The soft data raised fears of weaker fuel demand and added pressure on the Federal Reserve to deliver a rate cut at its September meeting.
At the same time, traders braced for Sunday’s OPEC+ meeting, where eight core producers are expected to consider raising quotas again, potentially unwinding another 1.65 million bpd of cuts more than a year ahead of schedule. “If they push more barrels into the market, the risk of surplus becomes significant,” Commerzbank analysts said.
U.S. inventories also added weight: crude stocks rose 2.4 million barrels last week, defying expectations for a draw. Combined with shaky economic data, that reinforced the sense of oversupply.
Still, supply risks linger. President Donald Trump urged Europe to halt Russian oil purchases, warning that sanctions could intensify if Moscow refuses to negotiate. But Russian President Vladimir Putin’s recent appearances alongside China’s Xi Jinping and India’s Narendra Modi signaled continued defiance, suggesting Russian barrels will remain in the market.