WTI Crude Oil Prices Rise Following NFP Report

WTI crude oil prices rose to around $70.80 per barrel on Friday, driven by renewed optimism about energy demand stemming from the latest US labor market report. While January’s Nonfarm Payrolls (NFP) fell short of expectations at 143,000 new jobs, the continued resilience of the labor market and strong wage growth boosted crude oil prices.

The US unemployment rate remained steady at 4%, as predicted, despite the lower-than-expected job additions. Wage growth was robust, with average hourly earnings increasing 0.5% month-over-month (in line with forecasts) and 4.1% year-over-year (above the anticipated 3.9%). The labor force participation rate also increased to 62.6%, suggesting continued economic activity and energy consumption.

The possibility of weaker economic data prompting earlier Federal Reserve rate cuts is also supporting oil prices. Such a move could stimulate economic activity, potentially increasing oil demand and driving prices higher.

Currently trading above $70.50 per barrel, WTI is testing the key resistance level of $71.00. A break above this level could lead to further price increases, while support is found at $70.00. Market participants will be closely watching upcoming macroeconomic developments for further clues about market direction.