Oil heads for second straight weekly gain even as prices edge lower after US jobs data; what lies ahead
US jobs data and positive oil stockpile data did little to allay fears of further interest rate hikes. US jobs growth slowed down in June but unemployment rate edged lower to 3.6 per cent, while nonfarm payrolls increased by 209,000 jobs last month, said the Labor Department in its employment report.
Erasing earlier gains, Brent crude futures were down 38 cents, or 0.5 per cent, at $76.14 a barrel, while US West Texas Intermediate crude slipped 50 cents, or 0.7 per cent, to $71.30 a barrel. Both benchmarks were set to gain over one per cent on the week.
Brent has dropped from $113 per barrel a year ago, due to concerns of sluggish economic growth. Brent's six-month backwardation , where nearby contracts trade above later ones indicating supply tightness, has risen sharply in recent sessions and touched a one-month high on Friday.
However, Brent is still trading around $10 a barrel below its April peaks, and has remained between around $71 and $79 a barrel since early May in the face of interest rate hikes and weak Chinese economic data. This copy is being updatedGet the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!
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