Oil prices rose more than 2% on Friday after US data supported expectations for demand growth, boosting optimism about a soft landing in the United States. This comes after both benchmarks fell for a seventh straight week, marking the longest decline in five years.
WTI prices have been struggling to regain the $70/barrel mark due to fresh demand concerns that have led to selling pressure. U.S. West Texas Intermediate crude oil futures settled at $71.23/barrel, up $1.89/barrel, or 2.7%. Brent crude oil futures settled at $75.84 per barrel, closing up $1.79, or 2.4%.
Data from the U.S. Labor Department showed stronger-than-expected job growth, a sign of strength in the labor market that should support fuel demand in the largest oil market as the U.S. economy improves.
The United States plans to hold monthly tenders until at least May next year to purchase oil for the Strategic Petroleum Reserve (SPR). The Biden administration is advancing plans to replenish oil reserves, which are now near their lowest levels in 40 years.
Russian Deputy Prime Minister Novak said on Friday that the OPEC+ group of major oil producers would be ready to make a decision if the market situation requires it.
Looking ahead to next week, financial data and events to watch include the US CPI report on Tuesday, the U.S. PPI and FOMC monetary policy decisions on Wednesday, the Bank of England and European Central Bank monetary policy decisions on Thursday, and the Empire State Manufacturing Survey and PMI preview on Friday.