Crude oil futures extend their previous session’s losses and settled sharply lower on Friday as hopes of an early rate cut by the Federal Reserve faded after data showed a much bigger than expected increase in U.S. non-farm payroll employment in the month of January. Fading rate cut hopes outweighed OPEC+ group's decision to leave its production policy unchanged. Moreover, worries about economic slowdown in China weighed on oil prices. The International Monetary Fund has forecast that China's economic growth would slow to 4.6% in 2024 and decline further to about 3.5% in 2028. Also, the dollar's sharp uptick after the jobs data, weighed on oil prices.
Benchmark crude oil futures for March delivery dropped $1.54 or about 2.1% to settle at $72.28 a barrel on the New York Mercantile Exchange. Brent crude for March delivery fell $1.49 or about 1.9% to $77.21 per barrel on London's Intercontinental Exchange.