Oil prices rose in Asian trading on Friday, as investors weighed a large drawdown of the US crude stockpiles ahead of key the US jobs data and a delay in OPEC+ output hikes.
Brent crude futures rose 13 cents to $72.82 by 0507 GMT and WTI crude futures rose 12 cents, or 0.17%, to $69.27.
The market is cautious as market participants try to make sense of mixed U.S. economic data this week, but the run-up to the key jobs report could limit some risk-taking.
Brent was expected to fall about 8% for the week, while WTI was on track to fall about 6%.
There were mixed signals in the U.S. economy this week, with nonfarm payrolls data due on Friday expected to be key to the extent of the U.S. rate cut at the Fed’s September 17-18 meeting.
U.S. service sector activity was steady in August, but private employment growth slowed and remained consistent with a softening labor market.
The sell-off in global markets in early August may remain fresh in investors’ minds, suggesting caution about the risks that U.S. labor conditions could turn into another surprise decline.
Oil prices fell more than a dollar in early August, with Brent settling at a seven-month low after fears of a U.S. recession led to a sell-off in global markets, but prices later rebounded on concerns about escalating conflict in the Middle East.
On Thursday, Brent fell to its lowest level in more than a year as concerns about U.S. and Chinese demand offset a major pullback from U.S. oil inventories and support from OPEC+’s decision to delay planned oil output increases.
Crude stocks fell by 6.9 million barrels to 418.3 million barrels, compared with analysts’ expectations in surveys for a 993,000-barrel drop due to lower imports.
The producer group said on Thursday that OPEC+ had agreed to delay planned oil output increases in October and November and could pause or roll back further increases if necessary.
However, markets appeared less than thrilled by the move. Demand concerns remain the main driver.
The U.S. dollar, which fell near a one-week low amid mixed signals from labor market indicators, also provided some support. A weaker dollar is making oil cheaper for buyers using other currencies.
