West Texas Intermediate (WTI) crude oil prices climbed on Friday, reaching approximately $70.80 per barrel as optimism over energy demand strengthened following the latest U.S. labor market report. Despite weaker-than-expected job additions in January, resilient employment conditions and steady wage growth bolstered crude prices.
Labor Market Resilience Fuels Oil Gains
January’s Nonfarm Payrolls (NFP) data showed a modest gain of 143,000 jobs, falling short of the expected 170,000. However, the U.S. unemployment rate held steady at 4%, reinforcing confidence in labor market stability. Wage growth remained strong, with average hourly earnings rising 0.5% month-over-month, aligning with forecasts, while the annual figure exceeded expectations at 4.1% versus the projected 3.9%. Additionally, the labor force participation rate edged up to 62.6%, signaling continued economic activity that could drive energy consumption.
Market sentiment also suggests that weaker economic data may prompt the Federal Reserve to consider rate cuts sooner, potentially stimulating economic growth and boosting oil demand.
Technical Outlook: WTI Eyes $71 Resistance
WTI crude is currently testing a critical resistance level at $71.00 per barrel. A successful breakout above this mark could open the door for further gains, while immediate support is seen at $70.00. Traders will be closely watching upcoming macroeconomic developments for further direction in oil markets.
