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Brent crude futures rose 67 cents, or 0.9%, to $77.89 a barrel
at 0932 GMT, while U.S. West Texas Intermediate (WTI) crude
futures inched up 69 cents, or 1%, to $73.70. Brent futures have
fallen about 2% so far this week, while WTI lost nearly 4%.
Both benchmarks hit their lowest since early January this week,
after the U.S. government sharply lowered its estimate of jobs
added by employers this year through March.
That sparked concern about a potential recession in the U.S.
hurting demand in the top oil consuming nation, but some
analysts say that was an overreaction to the jobs revision.
The market will be closely monitoring a keynote speech by
Federal Reserve chair Jerome Powell scheduled for 1400 GMT on
Friday, with the market widely anticipating a rate cut from next
month.
"Alluding to a quarter point cut in September is something
already priced in and will receive a lukewarm reaction," PVM Oil
analyst John Evans said.
"But a double-decker half point percentage cut goes against how
the Fed wishes to manage a controlled move away from
tightening," he added.
Morgan Stanley said in a note on Friday that a drawdown in oil
inventories has provided oil prices with some support.
"For now, the balance in the oil market is tight, with
inventories drawing approximately 1.2 million barrels per day in
the last four weeks, which we expect will continue in the
balance of [the third quarter]," the bank said.
Recent data from China, the top oil importer, has pointed to a
struggling economy and slowing oil demand from refiners. A
renewed push for a ceasefire in Gaza between Israel and Hamas
has also helped ease supply worries and weighed on oil prices.
U.S. and Israeli delegations started a new round of meetings in
Cairo on Thursday to resolve differences over a truce proposal.
(Additional reporting Sudarshan Varadhan in Singapore; editing
by Jason Neely)
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