ADP jobs numbers released yesterday might be pointing to a renewed slowdown in the energy sector. This comes amid a slowdown in US crude oil production and a decline in the numbers of oil rigs operating in the United States.

In a previous article, named, “Oil in Global Economy Series: American production struggling to tolerate below $50 price”, available at , we discussed a price below $50 per oil might be leading to a slowdown in the US energy sector as the numbers of operating rigs declined for the first time in 24 weeks, according to a report by Baker Hughes last week. The production in the United States also declined by 100,000 barrels. The latest jobs report from ADP also pointing in the same direction. The number of jobs in the natural resource and mining sector declined by 4,000 in June for the first time since September. The decline is also the highest since August 2016.

Since October 2014 until September last year, the US natural resource and mining sector lost about 10,000 jobs on an average every month. Since September until this decline last month, the sector added about 4,000 jobs every month.