Oil pushes higher on Iran sanctions, jobs data

Fri Feb 3, 2017 5:05pm EST
 
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By David Gaffen

NEW YORK (Reuters) - Oil prices rose on Friday after the United States imposed sanctions on some Iranian individuals and entities, days after the White House rebuked Tehran for a ballistic missile test.

The strong U.S. January jobs figure was also supportive, as it suggests ongoing strength in energy demand.

Front-month U.S. West Texas Intermediate crude futures settled up 29 cents, or 0.5 percent, to $53.83. The contract gained more than 1 percent for the week.

Brent crude futures settled 25 cents higher at $56.81 a barrel, giving it a 2 percent gain on the week, the first significant weekly rise this year.

Volume in U.S. crude futures on Friday was relatively low, with about 440,000 contracts changing hands by 3:30 p.m. EST (2030 GMT), short of the 200-day moving average of 528,000 contracts a day.

"I think that the consensus is that Iran supported the market, but I think that it’s probably more on the stronger jobs report leading to higher demand in the near term," said Carl Larry, director at Frost & Sullivan.

U.S. job growth surged more than expected in January as construction firms and retailers ramped up hiring. Nonfarm payrolls were up by 227,000, with the unemployment rate edging up to 4.8 percent.

Under the sanctions, announced by the U.S. Treasury, 13 individuals and 12 entities cannot access the U.S. financial system or deal with U.S. companies. They are also subject to "secondary sanctions," which means foreign companies and individuals are prohibited from dealing with them, or risk being blacklisted by the United States.   Continued...

 
A worker checks the valves at Al-Sheiba oil refinery in Basra, Iraq, January 26, 2016.   REUTERS/Essam Al-Sudani/File Photo