The U.S. Labor Department reported non-farm payrolls increased by 209,000 last month and hourly earnings in the same broad sector increased 9 cents to $26.36. Having had such a strong run higher in the last two weeks, contradictory inventory data this week and apparent record high OPEC production seemed to have sapped the appetite for upside risk for now.
As a result of e-commerce in London and NY stock exchanges, the world oil prices are rising, Gazeta.ru reports. West Texas Intermediate, the US benchmark for the price of oil, was up 0.06 percent to $49.06 per barrel. Russia's largest oil producer Rosneft said on Friday its crude oil output grew by 11.1 percent year-on-year in the second quarter of 2017 to 56.08 million tonnes.
Officials from Organizations of the Petroleum Exporting Countries (OPEC) and non-OPEC countries are meeting in Abu Dhabi on Monday and Tuesday to discuss ways to boot compliance with an output cut deal.
Oil in NY was unable to hold its advance above $50 a barrel last week as signs of rising global supply eroded optimism that output curbs by the Organization of Petroleum Exporting Countries and its partners are rebalancing the market.
Brent for October settlement gained 41 cents to close the session at $52.42 a barrel on the London-based ICE Futures Europe exchange. The effort is under pressure from a resilient Libya, where production is on pace to pass 1 million barrels per day.
"The good jobs report made people think that the economy is still going strong and demand will be rebalancing the market faster than expected", Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by telephone.
"Saudi Arabia will restate that they will export only 6.6 million bpd (six-year low) in August and inventories will continue to draw down".
Futures rose 1.1 percent in New York Friday, trimming a weekly drop to 0.3 percent.
Saudi Arabia's crude allocations to oil majors and some customers in Europe will be cut by 220,000 barrels per day in September, the first source said, while supplies to the United States will be reduced by around 1.1 million barrels in total for next month. "OPEC wants to achieve compliance through monitoring members' exports, which is neither easy nor fail-safe". However, some investors are reluctant to add to positions near or above $50 a barrel, since higher prices could prompt US shale to bring more projects online.