Oil prices rose on Friday, heading for a weekly gain of over 3% as positive U.S. jobs data alleviated demand concerns, while ongoing tensions in the Middle East continued to loom large. Brent crude futures increased by 22 cents, reaching $79.38 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose by 26 cents to $76.45 per barrel.
Analysts noted that sentiment was bolstered by the latest jobs data, which showed new unemployment claims falling significantly below expectations. This suggests that fears surrounding a potential recession may be exaggerated, with hopes for a larger draw in U.S. stockpiles this week contributing to the positive outlook.
Despite a stronger dollar, which typically puts downward pressure on oil prices, the market remained resilient. The geopolitical landscape has also been a key factor, with Israeli airstrikes in Gaza raising concerns about escalating conflict and potential disruptions to oil supply from a critical region.
ANZ analyst Daniel Hynes pointed out that heightened geopolitical risks have supported crude oil prices as they recover from recent declines. The potential for retaliatory strikes by Iran against Israel has further fueled worries about oil supply security.
Additionally, Libya’s National Oil Corporation declared force majeure at its Sharara oilfield due to protests, which has also contributed to upward pressure on prices.