West Texas Intermediate crude futures gained 72 cents, or 1.06 per cent, to $68.39 a barrel and Brent crude futures were up 71 cents, or 1 per cent, at $71.77 a barrel
Oil futures rose in Asian trading on Monday as a hurricane approached the U.S. Gulf Coast, and as markets recovered from a selloff following weaker-than-expected U.S. jobs data on Friday.
West Texas Intermediate (WTI) crude futures gained 72 cents, or 1.06 per cent, to $68.39 a barrel by 0635 GMT. Brent crude futures were up 71 cents, or 1 per cent, at $71.77 a barrel.
Prices had gained as much as $1 during early Asian trading before retreating.
Analysts said the rise was in part a reaction to a potential hurricane in the U.S. Gulf Coast.
A weather system in the southwestern Gulf of Mexico is forecast to become a hurricane before it reaches the northwestern U.S. Gulf Coast, the U.S. National Hurricane Center said on Sunday. The U.S. Gulf Coast accounts for around 60 per cent of U.S. refining capacity.
Sentiment recovered somewhat from last week’s selloff, according to independent market analyst Tina Teng.
At the Friday close, Brent had declined 10 per cent on the week to the lowest level since December 2021, while West Texas Intermediate slipped 8 per cent to its lowest close since June 2023 on weak jobs data in the U.S.
A highly anticipated U.S. government jobs report showed nonfarm payrolls increased less than expected in August, rising by 142,000, and the July figure was downwardly revised to an increase of 89,000, which was the smallest gain since an outright decline in December 2020.
Lower interest rates typically increase oil demand by spurring economic growth and making oil cheaper for holders of non-dollar currencies.
But weak demand continued to cap price gains.
