Oil prices rose this evening in volatile trading, as stronger than expected US jobs data reinforced economic growth expectations. But the jobs figures also held out the possibility of a pull back from loose US monetary policy and a consequent strengthening the dollar.
A bounce by the euro erasing earlier losses against the dollar helped send Brent crude above $118 a barrel, while US crude jumped to a two-and-a-half-year peak near $108.
Prices seesawed after the jobs report. Traders and analysts said the increase in jobs should boost oil demand. The report initially boosted the dollar and kept in play the view that the US Federal Reserve might curb its current ultra-loose monetary policy that tends to benefit riskier assets like commodities.
This evening, Brent crude rose 82 cents to to $118.18 a barrel, while US crude rose 76 cents $107.48, having reached $107.93, the highest intra-day price since September 2008.
