Oil prices were slightly lower in early Asian trade on Friday 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 0300 GMT, while U.S. West Texas Intermediate (WTI) crude futures were down 1 cent at $76.09 a barrel. Both benchmarks were still on track for gains of more than 3% on the week.
Palestinian medics said Israeli forces intensified air strikes on the Gaza Strip on Thursday, killing at least 40 people, as they braced for the possibility of a wider war in the region.
"Crude oil continued to recover from its recent slide as markets focused on rising geopolitical risks," said Daniel Hynes, an analyst at ENZ.
Libya’s National Oil Corp also offered some support when it declared force majeure on the Sharara oilfield effective Wednesday, saying the field’s output was being gradually reduced due to protests.
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 stronger dollar typically dampens oil prices because buyers using other currencies have to pay more for dollar-denominated crude.
