Weaker-than-expected US employment data reduces Fed rate hike bets, lifting oil prices amid Middle East tensions.
West Texas Intermediate crude climbed 0.30% to $68.65 on Friday, recovering from recent losses as the US Dollar weakened. The move followed June’s Nonfarm Payrolls report, which showed only 57K jobs added, far below the expected 110K, easing Fed tightening expectations.
Market focus remains on US-Iran negotiations, though recent talks in Doha failed to yield a breakthrough. Geopolitical risks persist, providing support for oil prices despite concerns over a potential supply surplus. Analysts note the recent price decline reflects future surplus expectations rather than current oversupply.
The softer jobs data mechanically boosted USD-denominated commodities, including oil, as the Dollar retreated. Traders continue to monitor Middle East developments, with lingering tensions offsetting demand concerns.