Middle East tensions push oil towards 3% weekly gain

Oil prices were slightly lower in early Asian trade on Tuesday but were on track for gains of more than 3% this week after U.S. jobs data eased demand concerns and continued concerns about a widening conflict in the Middle East.

Brent crude futures were down 9 cents, or 0.11%, at $79.07 a barrel by 0030 GMT, while U.S. West Texas Intermediate (WTI) crude futures were down 1 cent at $76.09 a barrel.

“Crude oil continued to recover from its recent slide as markets focused on rising geopolitical risks,” said Daniel Hynes, analyst at ANZ.

Prices rose after data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting concerns about a deteriorating labor market were overblown.

The dollar rose after the jobs data. A strong dollar usually reduces oil prices because buyers using other currencies have to pay more for dollar-denominated crude.