Oil Futures Rise, Set for Weekly Gain of 7%

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Oil Futures Rise, Set for Weekly Gain of 7%

Futures for crude oil climbed for the second straight session on Friday as upbeat monthly US jobs data boosted expectations for energy demand and a report signaling potential decline in oil production for the nation.

Market Watch reported that light, sweet, crude for March delivery traded 2.5% higher or $1.25 at $51.73 per barrel.

March delivery Brent crude climbed 2% or $1.15 to $57.72 per barrel. The prices were poised to end the week with a gain of more than 7%.

Oil was given a little boost by the jobs number, but it was a double-edged sword, according to Phil Flynn, senior market analyst at Price Futures Group.

257,000 new jobs were added by the US in January starting off 2015 on a high note, with the pace of hiring accelerating sharply during the winter period. Upbeat economic data tends to boost the likelihood of the climb in the demand for energy.

Reuters quoted Gene McGillian, analyst at Tradition Energy as having said, “People have only started paying attention to the oil rig count in the past week despite the fact they have been falling for weeks. I think the people really benefiting from these market gyrations are the high frequency traders as volumes are really up.”

The global count for oil drilling rigs dropped by 261 in January, as reported by oil services firm, Baker Hughes. The average number of US oil dropped 199 in January, following the biggest weekly drop since 1987, in the week ending January 23.

On Nymex, reformulated gasoline blendstock for March, the benchmark gasoline contract, climbed 1.5% to $1.548 per gallon trading about 4.8% higher for the week. Heating oil prices for March traded 1.5% up ar $1.832 for the session.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com