Crude oil prices rose sharply on Friday as buoyant U.S. jobs data and stronger-than-expected data on Chinese manufacturing activity helped ease concerns about energy demand outlook.
Some positive news on the trade front too contributed to oil’s sharp uptick.
West Texas Intermediate Crude oil futures for December ended up $2.02, or about 3.7%, at $56.20 a barrel.
Brent Crude futures gained $2.12, or 3.6%, at $61.74 a barrel.
On Thursday, WTI crude oil futures for December ended down $0.88, or about 1.6%, at $54.18 a barrel.
For the week, WTI crude oil futures shed about 0.9%.
According to Baker Hughes, the rig count dropped to 691 in the week to 1 November 2019, down 5 from previous week’s count of 696.
Data from the U.S. Labor Department said non-farm payroll employment climbed by 128,000 jobs in October compared to economist estimates for an increase of about 89,000 jobs.
The report also showed substantial upward revisions to job growth in September and August, with revised data showing employment jumped by 180,000 jobs and 219,000 jobs, respectively.
Despite the stronger than expected job growth, the report said the unemployment rate inched up to 3.6% in October from 3.5% in September. The uptick matched economist estimates.
Meanwhile, a report from the Institute for Supply Management showed a continued contraction in U.S. manufacturing activity in the month of October.
In China, the manufacturing sector expanded at the fastest pace since early 2017 in October, data from IHS Markit showed Friday.
The manufacturing Purchasing Managers’ Index rose to 51.7 from 51.4 in September. A score above 50 indicates expansion.
On the trade front, a report in China’s Xinhua News Agency said the U.S. and China have “reached consensus on principles.” Earlier, U.S. Commerce Secretary Wilbur Ross reportedly said the interim trade pact with China appeared in good shape.
The material has been provided by InstaForex Company – www.instaforex.com