The crude oil market went up by more than $1 on Friday after a favourable jobs report in the United States and resumed trade talks between the US and China.
The price of Brent crude increased by $1.13 or 1.73 per cent to $66.47 a barrel and the US West Texas Intermediate (WTI) crude finished at $64.58 per barrel, up by $1.21 or 1.91 per cent.
In the week, crude oil posted its first weekly gain in three weeks as Brent advanced by 2.75 per cent and WTI improved by 4.9 per cent.
The US Labor Department’s monthly employment report showed the unemployment rate held steady at 4.2 per cent last month.
Employers added 139,000 jobs, which combined with downward revisions to prior months’ estimates showed a cooling in labor demand but nothing abrupt; by comparison, monthly job gains averaged 160,000 last year.
US President Donald Trump and President Xi Jinping of China confronted weeks of brewing trade tensions and a battle over critical minerals in a rare leader-to-leader call on Thursday.
China said the trade talks between the two leaders took place at the US’ request on Thursday.
President Trump said the call had led to a “very positive conclusion”, adding the US was “in very good shape with China and the trade deal”.
In another sign of easing tensions over the issue, China has granted temporary export licenses to rare-earth suppliers of the top three US automakers, two sources familiar with the matter said.
The US president’s top aides are set to meet their Chinese counterparts in London on Monday for further talks.
This development raises hopes for growth in the world’s two largest economies, supporting the markets.
The crude market also continues to tap into moves by the Organisation of the Petroleum Exporting Countries and allies (OPEC+) agreement to ramp up output by a previously announced 411,000 barrels per day in July.
The group rejected a Saudi recommendation for a bigger output hike, part of a broader strategy to win back market share for OPEC+.
The US oil and gas rig count, an early indicator of future output, fell by four to 559 in the week to June 6, the lowest since November 2021, energy services firm Baker Hughes said on Friday.