Oil bounces amid robust US jobs data despite slowdown worries

WTI oil recovers with a 3% rise, but fears about rate hikes are lurking, possibly casting a shadow over the oil market. An increase in US employment helps Wall Street recover and reduces the influence of the dollar on oil prices. Despite supply curbs from OPEC+, China’s declining manufacturing activity weighs on WTI.

WTI, the US crude oil benchmark, climbed more than 3% on Friday but remained set to finish with more than 7% losses on fears for further rate hikes and a global economic slowdown. Hence, WTI is trading at $70.96 PB after hitting a low of $68.54.

After the US Bureau of Labour Statistics (BLS) indicated that hiring in the US is picking up, as shown by the Nonfarm Payrolls (NFP) report, Wall Street is showing signs of recovery. Despite the fact that it caused a spike in US Treasury bond yields, the sinking dollar is providing some support for WTI prices.

WTI prices fell after the Caixin PMI survey, which was later verified by the National Bureau of Statistics (NBS) report, showed that manufacturing activity in April continued to decline. That occurs despite the fact that the Organization of Petroleum Exporting Countries and its partners, known as OPEC+, took action to reduce their daily supply of crude oil by more than 1 million barrels in an effort to support oil prices.

WTI reversed the gains it had made at the beginning of April, which had increased by more than 6%. According to sources cited by Reuters, crude is attempting to revert the recent price washout brought on by rising interest rates and recession fears, particularly in the banking sector.