Oil prices remained largely unchanged on Friday as fresh U.S. employment data supported expectations that the Federal Reserve may hold interest rates steady. Meanwhile, uncertainty over President Donald Trump’s upcoming tariff announcements kept investors cautious.
Brent crude futures edged up by just 1 cent, trading at $68.81 per barrel, while U.S. West Texas Intermediate (WTI) crude rose slightly by 3 cents to reach $67.03. The U.S. Independence Day holiday led to lighter trading volumes across markets.
U.S. job growth surpassed expectations in June, with 147,000 new positions added and unemployment falling to 4.1%. These figures helped ease fears of a cooling economy and reassured investors about future oil demand. However, concerns lingered over upcoming U.S. tariffs, which could impact global trade flows.
President Trump revealed that starting Friday, the U.S. would send tariff letters to 10 countries at a time, outlining new duties ranging from 20% to 30%. This marks a shift from his earlier promise of bilateral trade deals and adds to market uncertainty as the 90-day tariff pause ends on July 9.
At the same time, oil supplies may rise soon as OPEC+ is expected to increase production by 411,000 barrels per day in August. The group aims to reclaim lost market share, putting some pressure on oil prices despite rising demand forecasts.
Additionally, the U.S. Treasury imposed new sanctions targeting a network accused of smuggling Iranian oil disguised as Iraqi crude, along with a financial institution linked to Hezbollah. Despite geopolitical tensions, Barclays raised its Brent crude forecast by $6 to $72 per barrel for 2025, expecting stronger global demand.