A better-than-expected U.S. jobs report for April helped oil prices rise 4% on Friday, although labor market strength may push the Federal Reserve (the U.S. central bank) to keep interest rates on hold. higher interest for longer.
The price change
Brent crude rose $1.63, or 2.16%, to $76.93 a barrel at 11:09 GMT. U.S. West Texas Intermediate crude also rose $1.72, or 2.4%, to $73.09, according to Reuters data.
“Oil’s rally follows a surge in energy stocks on Wall Street last Friday after the U.S. released strong jobs data, allaying fears of a looming recession,” Tina said. Ting, analyst at CMC Markets.
Brent crude ended last week down around 5.3%, while US crude fell 7.1%, even after prices rebounded on Friday. Both benchmarks fell for three consecutive weeks for the first time since November.
A series of voluntary production cuts by some countries in the OPEC+ coalition, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, begins this month. The coalition will hold its next meeting on June 4.
On Wednesday, the United States is expected to release its Consumer Price Index report for April, which could influence the Federal Reserve’s decision on interest rates.
OPEC releases its latest monthly oil market report on Thursday, which will provide an updated reading of its supply and demand forecasts.
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