U.S. employment data for February has shown a rise in nonfarm payrolls by 311,000, exceeding expectations of 205,000 jobs added...

U.S. Employment Data and Crude Oil Price

United States employment data for February has shown a rise in nonfarm payrolls by 311,000, exceeding expectations of 205,000 jobs added. However, this positive news could lead to the US Federal Reserve raising interest rates for longer, which would weigh on oil prices.

The surge in employment figures contrasts with January's numbers, which saw only 205,000 jobs added. US Federal Reserve Chair, Jerome Powell, has warned of higher and potentially faster rate hikes, citing the bank's initial misjudgment that inflation was transitory.

Meanwhile, major oil producers Saudi Arabia and Iran agreed to resume diplomatic relations and re-open embassies within two months, leading to a potential increase in the number of oil barrels flowing through the world. Crude oil prices increased by more than 1% on Friday after the release of better-than-expected US employment data.