Crude oil futures closed higher on Friday, March 10th, supported by a weaker dollar and the release of strong US employment data that indicated the economy is expanding and will increase demand for oil.
WTI crude futures rose 96 cents, or 1.27%, to settle at $76.68 a barrel, while crude oil futures BRENT rose $1.19, or 1.46%, to close at $82.78/bbl. Despite the gains, both contracts were down for the week, with WTI down 3.8% and BRENT down nearly 3.6%.
Investors flocked to buy oil contracts after the recent price drop, and the dollar’s depreciation also boosted oil futures. Crude oil contracts, priced in dollars, became cheaper for investors holding other currencies as the dollar index against a basket of six major currencies was down 0.68% to 104.5913.
Crude futures also rose on strong economic prospects and rising energy demand. The US Department of Labor revealed that non-farm payrolls rose by 311,000 in February, above analysts’ expectations of 225,000, but slowed from 504,000 in January. The unemployment rate rose to 3.6%, above analysts’ expectations of 3.4%.
The combination of a weaker dollar and strong employment data boosted investors’ confidence in the market, resulting in increased demand for crude oil futures. This news is positive for the energy sector and suggests that the demand for oil is likely to continue to rise as the global economy recovers from the impact of the pandemic.
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Saturday, March 11, 2023