Oil Rises On "Goldilocks" Jobs Report And China Optimism

Trump declares relations with China to be "in very good shape": File Image/Pixabay

An unexpected weekly rise of almost 5 percent in oil prices on Friday contributed to gains in energy company shares, as daily prices rose due to a positive U.S. jobs report and hope that U.S./China talks will lead to a de-escalation of economic hostilities.

Brent settled up $1.13 at $66.47 per barrel, and West Texas Intermediate settled up $1.21 at $64.58; for the week, Brent advanced 2.7 percent, and WTI traded 4.9 percent higher.

Data showed that the U.S. unemployment rate held steady at 4.2 percent last month, which prompted Phil Flynn, senior market analyst with the Price Futures Group Inc., to remark, “I think the jobs report was Goldilocks: not too hot, not too cold, but just right to increase the chances for an interest rate cut by the Federal Reserve.”

Flynn went on to break with familiar analytical rhetoric by musing that recently-announced output hikes by the Organization of the Petroleum Exporting Countries (OPEC) would be absorbed by higher demand.

Meanwhile, U.S. president Donald Trump told media that trade talks with China took place on Thursday at Washington’s request, that they had resulted in “a very positive conclusion,” and that the U.S. was “in very good shape with China and the trade deal.”

Lorenzo Di Mattia, manager of Sibilla Global Fund, said, "There's effectively been a U-turn on tariffs; I don't think we're heading back to chaos - tariffs will likely be higher than before, but not to a degree that causes major disruptions."

The good news arguably compelled traders to ignore economic data from Europe showing that while first quarter Eurozone GDP growth was revised higher to 0.6 percent quarter-on-quarter, and retail sales beat were up 2.3 percent year-on-year, industrial production contracted faster than anticipated, especially in Germany.

Also, media noted that open interest in WTI calendar spread options (contracts that see market participants bid on the future value of crude oil futures across different delivery months) reached an all-time high, as traders expected this year’s assumed oversupply to only materialize in 2026.