Oil prices held steady on Friday as a stronger-than-expected United States jobs report bolstered the case for the Federal Reserve to keep interest rates unchanged, while market participants awaited further clarity on President Donald Trump's upcoming tariff measures.
By 3:10 pm AEST (5:10 am GMT) Brent crude futures were down $0.22 or 0.3% to US$68.58 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped $0.12 or 0.1% to $66.88.
Trading volumes were subdued due to the U.S. Independence Day holiday.
Investor sentiment was supported by data released Thursday showing that U.S. employers added 147,000 jobs in June - exceeding expectations - and the unemployment rate unexpectedly dropped to 4.1%.
President Trump added a new layer of complexity to market outlooks, announcing that beginning Friday, the U.S. would start sending letters to various countries specifying the tariff rates they will face - ranging between 20% and 30%.
The 90-day pause on increased tariffs expires on July 9, with significant U.S. trading partners like the EU and Japan yet to secure agreements.
Meanwhile, potential supply increases from the Organisation of the Petroleum Exporting Countries (OPEC+) are also keeping crude prices in check. Four delegates told Reuters the group plans to raise output by 411,000 barrels per day in August as it seeks to reclaim global market share.
Geopolitical tensions surrounding Iranian oil exports remained a focal point. The U.S. Treasury announced new sanctions Thursday targeting a network allegedly smuggling Iranian oil disguised as Iraqi crude, as well as a Hezbollah-linked financial institution.
These measures are part of the Trump administration’s ongoing “maximum pressure” campaign against Tehran.
Meanwhile, ANZ analysts noted an Axios report revealing that the U.S. plans to restart nuclear talks with the OPEC oil producer, potentially reducing the risk of another flare up in the Middle East.
