Oil pares large weekly drop after U.S. jobs data tames dollar

Oil pared a large weekly loss as U.S. employment figures allayed some concerns of a major hit to global consumption this year.

West Texas Intermediate climbed near US$75 a barrel on Friday. A slew of U.S. economic data indicated a resilient labor market that nevertheless may give room for the Federal Reserve to slow interest-rate hikes. The data pushed the dollar down, which makes commodities priced in the currency more attractive to buyers, and aided risk-assets such as crude. 

But prices still remain almost 7 per cent lower this week as demand uncertainty hangs over the market and thin liquidity leads to outsized moves in single trading sessions. Saudi Arabia cut prices for crude sold to Asia and Europe in February, signaling concerns over the near-term outlook. Meanwhile, China is battling a surge in virus cases after Covid-19 restrictions were lifted, though mobility is set to rise as the Lunar New Year holidays approach.