Oil Prices Rebound on Weak US Jobs Data and Iran Uncertainty
Oil prices rose on Friday after weaker-than-expected US jobs data and renewed uncertainty surrounding Iran-US talks. The Brent crude futures price climbed 84 cents, or 1.02%, to $83.33 a barrel at 10:28 a.m. CDT (1528 GMT), while West Texas Intermediate (WTI) gained 89 cents, or 1.15%, to $78.18.
The market had moved sharply lower earlier in the week due to increased hopes for an agreement between Iran and the United States, but Friday's gains were unable to offset the steep weekly declines both benchmarks are tracking. The US economy lost 23,000 jobs in July, according to government data, which Phil Flynn, senior analyst at Price Futures Group, attributed as the key driver of the market.
The uncertainty surrounding Iran-US talks continued to weigh on oil prices, with developments surrounding the Strait of Hormuz injecting additional volatility into the market. Iran is seeking fees of 5% to 7% of cargo values from ships using the waterway, while Oman is considering charges of around 3%. However, the proposed agreement between Iran and Oman could face difficulties due to US sanctions and restrictive insurance provisions.