Oil prices rose more than $1 a barrel on Friday and were on track for their first weekly gain in three weeks, buoyed by a solid U.S. jobs report and renewed trade talks between Presidents Trump and Xi. Brent crude climbed 1.96% to $66.62, while U.S. West Texas Intermediate rose 2.11% to $64.71.
The U.S. Labor Department reported steady unemployment at 4.2% and a gain of 139,000 jobs in May, signaling a moderate cooling in labor demand. Analysts noted the data increases the likelihood of a Federal Reserve interest rate cut, which could spur economic activity and boost oil demand.
Trade optimism also supported prices, with both Chinese and U.S. officials describing the recent Trump-Xi call as positive. Canadian officials remain in discussions with the U.S. to ease trade tensions, adding to the sense of improved global economic prospects.
Despite OPEC+ plans to boost July output by 411,000 barrels per day, analysts believe rising summer demand may absorb the extra supply. Saudi Arabia, meanwhile, cut its July prices for Asian buyers to near two-month lows, a smaller drop than expected.
Geopolitical risks persist, with potential U.S. sanctions on Venezuela and Israeli threats against Iran adding upside pressure. However, HSBC forecasts the oil market could move into surplus by Q4 2025 if OPEC+ accelerates its output increases beyond the summer peak.