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Oil prices will likely gain this week after Friday’s forecast-beating U.S. jobs report though any rally may fade quickly as one month’s data will do little to ease broader concerns about an anemic recovery in the world’s largest economy, according to CNBC's weekly survey of oil market sentiment.
“We expect the recent recovery in the crude oil price will be difficult to sustain in an environment where global growth fails to recover and in the absence of central bank action to stimulate growth,” wrote Deutsche Bank analysts in a report on Friday.
“Prospects for growth will improve from September onwards, which we expect will herald a more constructive environment for global oil markets,” the report said.
U.S. nonfarm payrolls increased by a seasonally adjusted 163,000 jobs last month, the biggest increase since February, even as the unemployment rate ticked up to 8.3 percent, the Labor Department said Friday.
In response, light, sweet crude for September delivery rose $4.27, or 4.9 percent, to settle at $91.40 a barrel on the New York Mercantile Exchange on Friday. The contract reached $91.74, its highest intraday price since July 20, before pulling back slightly. Brent crude on ICE Futures Europe settled up $3.04, or 2.9 percent, at $108.94 a barrel.
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