Global crude oil prices showed mixed movements on Thursday, with Brent crude trading at $108 per barrel, up 0.02%, while West Texas Intermediate (WTI) stood at $94.15, down 0.35%.
Murban crude recorded a sharper increase, rising by 6.12% to $111.8 per barrel, while natural gas prices edged higher by 0.43% to $3.012.
Despite the relative stability in prices, Goldman Sachs has warned that the ongoing oil price surge could negatively impact the U.S. labour market.
According to the investment bank, higher crude prices may lead to a loss of about 10,000 jobs per month through the rest of the year, as rising energy costs ripple across the broader economy.
The bank noted that unlike previous oil booms, higher prices are no longer translating into significant job creation in the energy sector, as U.S. oil producers have become more efficient, automated, and cautious about expanding operations.
It added that rising fuel costs are already affecting key sectors such as transportation, manufacturing, food, and services, forcing businesses to delay hiring while consumers cut spending.
Goldman Sachs further warned that the U.S. economy was already showing signs of slowing before the latest spike in oil prices driven by Middle East tensions, with energy costs now acting as an added strain rather than a growth driver.
While the U.S. Federal Reserve is maintaining a wait-and-see approach, analysts caution that energy-driven inflation could persist longer than expected, especially if supply disruptions continue, posing further risks to economic growth.