Oil prices edged up on Monday, aided by hopes of rising fuel demand this summer despite being weighed down by a firmer dollar, as expectations of interest rate cuts were pushed out further following strong U.S. jobs data.
Brent crude futures gained 28 cents, or 0.4%, to $79.90 a barrel by 0427 GMT and U.S. West Texas Intermediate crude futures was up 0.3%, or 26 cents, at $75.79 a barrel.
On Friday, data showed the U.S. added more jobs than expected last month, leading investors to trim expectations for rate cuts, which helped the dollar to rally.
A stronger greenback makes dollar-denominated commodities such as oil more expensive for holders of other currencies.
The euro also came under pressure, reflecting uncertainty in the eurozone after French President Emmanuel Macron called snap legislative elections for later in June after he was trounced in the European Union vote by Marine Le Pen’s far-right party. “Regarding Macron and elections, it does create another layer of uncertainty, coming after the upside surprise in U.S. non-farm payrolls, which saw yields scream higher,” Tony Sycamore, a Sydney-based analyst at IG said.
