Oil slips ahead of U.S. jobs report
Oil prices dipped on Friday after posting strong overnight gains on a weaker dollar and a bigger-than-expected fall in U.S. crude stocks and were headed for small gains on the week ahead of a highly anticipated U.S. monthly jobs report.
U.S. West Texas Intermediate (WTI) crude futures fell 24 cents, or 0.3%, to $69.75 a barrel at 0200 GMT.
Brent crude futures fell 13 cents, or 0.2%, to $72.90 a barrel.
The move down was probably due to traders squaring positions ahead of the U.S. non-farm payrolls report for August, on worries the report may be weaker than consensus forecasts, said Stephen Innes, managing partner at SPI Asset Management.
Both benchmark oil contracts jumped 2% on Thursday, putting WTI on track to climb 1.5% for the week, while Brent headed for a 0.3% weekly gain.
The increase this week has been mostly based on a falling U.S. dollar, which makes oil cheaper in other currencies, and the fallout from Hurricane Ida.
About 1.7 million barrels per day of oil production remains shut in the U.S. Gulf of Mexico, with damage to heliports and fuel depots slowing the return of crews to offshore platforms, sources told Reuters.
Offsetting the supply impact, oil demand has been curbed as extended power outages are slowing the reopening of refineries that were shut in Louisiana.
Thai
Eng