NEW YORK: Oil prices rallied again on Friday after a one-day pause, helped by strong US jobs data and technical buying after crude prices breached resistance levels on charts.
Speculation that the number of US rigs drilling for oil had fallen this week for a 11th straight week was also keeping oil firmly in positive territory, traders said.
Brent futures, the global benchmark for crude, were up $1.26 at $38.33 a barrel by 11:40 a.m. EST (1640 GMT).
US crude’s West Texas Intermediate (WTI) futures were up $1.08 at $35.65.
Oil prices were mixed on Thursday after rallying for the first three days of the week. Crude futures are on track for a weekly rise.
US jobs growth surged in February, the Labor Department reported, the clearest sign yet of employment market strength.
Charts for Brent and WTI showed Relative Strength Index (RSI) at above 60, heading toward the overbought level of 70. RSI levels spiked as crude prices jumped more than 35 percent from 12-year lows hit less than 2 months ago.
For the rally to extend on technical ground, WTI had to settle or decisively break above $35, said David Thompson at Washington-based commodities broker Powerhouse.
“If the bulls fail to muster that strength, I suspect there are many potential sellers hoping to drive it back down,” Thompson said.
“Friday closes bear extra weight because traders must live with their choices over the weekend.”
Oil prices rally again after a one-day pause
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