A weaker US Dollar lifted crude oil on Friday, with WTI trading near $68.83 and Brent around $72.10 a barrel. Soft US jobs data trimmed near-term Fed rate-hike bets, while easing Middle East tensions kept gains in check.
A softer US Dollar pulled crude oil prices higher on Friday, as West Texas Intermediate traded near $68.83 per barrel and Brent hovered around $72.10, recovering modestly after recent declines ahead of the US holiday weekend. Easing geopolitical concerns in the Middle East capped the advance.
Soft jobs data pressures the dollar
The move followed the latest US employment figures, which pointed to a cooling labour market. According to the US Bureau of Labor Statistics, Nonfarm Payrolls rose by 57,000 in June, below market expectations of 110,000. The unemployment rate declined to 4.2% from 4.3% recorded in May.
The data led markets to reduce expectations of a near-term interest rate hike by the US Federal Reserve. A weaker US Dollar generally benefits commodities priced in the currency by making them cheaper for holders of other currencies, which supported WTI despite broader geopolitical worries.
Middle East diplomacy caps the rebound
Investor sentiment stayed cautious as markets assessed diplomatic efforts between the United States and Iran, which showed no clear signs of meaningful progress. According to Invezz, US President Donald Trump said on Thursday, “I think they have accepted nearly everything we require.”
His comments followed reports from Qatar of “positive progress” after Washington and Tehran concluded indirect technical talks in Doha, focused on the Memorandum of Understanding signed on June 17. The developments eased some concerns over potential supply disruptions.
Brent tracks a fourth weekly decline
Although WTI recovered, broader pressure on crude persisted. Tanker traffic through the Strait of Hormuz continued to recover, reducing immediate worries over disruptions to global oil shipments.
Brent crude remained on track for its fourth consecutive weekly decline, which, if confirmed, would mark the benchmark’s longest weekly losing streak since August 2024. For now, crude sits between support from a weaker dollar and lingering uncertainty over Middle East diplomacy.
Source: Invezz
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