Oil Prices Inch Higher Amid Caution Ahead of Key U.S. Employment Data

Oil prices edged higher during Asian trading on Friday as investors remained cautious ahead of the release of key U.S. employment data. This comes amid weighing factors, including a significant withdrawal from U.S. crude inventories and a potential delay in production hikes by OPEC+ producers.

By 0507 GMT, Brent crude futures increased by 13 cents to $72.82, while U.S. West Texas Intermediate (WTI) crude futures rose by 12 cents, or 0.17%, to $69.27.

Despite the slight gains, Brent was set to end the week with an almost 8% drop, and WTI was on course for a near 6% decline.

The U.S. economic outlook presented mixed signals ahead of Friday’s nonfarm payrolls report, which is expected to influence the Federal Reserve’s decision on a possible interest rate cut during its Sept. 17-18 meeting. While U.S. services sector activity remained stable in August, private job growth slowed, indicating a softening labor market.

Earlier in August, oil prices experienced a sharp drop, with Brent reaching a seven-month low due to recession fears in the U.S., although they later rebounded as concerns over Middle Eastern tensions escalated.