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Brent crude futures settled up $1.17, or 1.51%, at $78.76 a
barrel. U.S. West Texas Intermediate crude futures finished up
$1.62, or 2.24%, at $73.81.
Crude rebounded from losses on Thursday triggered by hefty
increases in U.S. gasoline and distillate stocks, and both
benchmarks ended the first week of the year higher.
"With the tensions in the Middle East, the geopolitical trading
premium has to get pushed higher," said John Kilduff, partner at
Again Capital LLC. "It's hard for traders to fight the
headlines."
Shipping giant Maersk said it will divert all vessels away from
the Red Sea for the foreseeable future, warning customers of
disruptions.
A U.S. government report showing employment grew in December
would support demand in the coming year, Kilduff said.
U.S. employers hired more workers than expected in December
while raising wages at a solid clip, prompting financial markets
to dial back expectations that the Federal Reserve would start
cutting interest rates in March.
Non-farm payrolls increased by 216,000 jobs last month, the
Labor Department said. Economists polled by Reuters had forecast
payrolls rising by 170,000 jobs.
"Strong employment should point to strong demand for fuel,"
Kilduff said.
Bank of America said it was taking a defensive stance toward oil
stocks because of the long-term price forecast for oil.
It said it expects the $70-$90 a barrel Brent trading range in
place since OPEC+ intervened to hold, adding that "a permanently
backward oil curve steepened by spare capacity" is a headwind
for sector value.
Oilfield services company Baker Hughes said the count of active
drilling rigs - oil and natural gas rigs combined - fell by one
last week to 621, the third decline in four weeks.
Crude oil drilling rigs were up by one at 501 while natural gas
drilling rigs fell by two to 118.
Money managers cut their net long U.S. crude futures and options
positions in the week to Jan. 2, the U.S. Commodity Futures
Trading Commission (CFTC) said on Friday.
The speculator group cut its combined futures and options
position in New York and London by 33,051 contracts to 51,215
during the period.
(Reporting by Erwin SebaAdditional reporting by Robert Harvey
and Noah Browning in London and Sudarshan Varadhan in
SingaporeEditing by David Gregorio, Jonathan Oatis, Alexander
Smith, David Goodman and David Gregorio)
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