Oil rebounds from 2-month lows, US NFP, rigs data eyed

After having booked almost 5% losses on Thursday, oil benchmarks on both sides of Atlantic stage a comeback on the final trading day of the week on the back of profit-taking, as we head towards the release of the highly influential US labour market report.

Oil awaits US rigs count data

Currently, both crude benchmarks rebound, with Brent up 1.08% at $ 46.90, while WTI trades +0.91% higher at $ 45.55 levels. Oil prices swung back into the positive territory as dust settles after the EIA inventory aftermath and attention now shifts towards the upcoming US employment data. Markets look to unwind their positions ahead of the crucial US payrolls data, which may have significant impact on the dollar-priced in commodity.

On Thursday, oil prices faced double whammy from a rebound in the US dollar amid upbeat US jobs data, while a smaller-than expected fall in the US crude stockpiles, as reflected by the EIA report, also weighed further on oil.

ANZ bank noted on Friday, "The oil price fell to its lowest level in almost two months after an EIA report showed that inventories fell by less than expected. The EIA report said crude supplies fell 2.22 million barrels (524.35 million barrels) to in the week ended July 1." 

Looking ahead, markets believe that the outlook looked volatile amid mixed fundamentals, while US rigs count data due later today.