Crude oil futures - weekly outlook: June 8 - 12

Investing.com - Crude oil futures rebounded from earlier losses to rise sharply on Friday, after data showed that the number of rigs drilling for oil in the U.S. fell again last week.

On the New York Mercantile Exchange, crude oil for delivery in July jumped $1.13, or 1.95%, to end the week at $59.13 a barrel. Nymex oil prices fell to $56.83 earlier in the day, the lowest level since May 28. For the week, New York-traded oil futures declined $1.16, or 1.94%.

Industry research group Baker Hughes (NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. fell by 4 last week to 642. The drop marks the 26th straight week of declines.

Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.

The U.S. Energy Information Administration said on Wednesday that crude oil inventories fell by 1.9 million barrels last week to 477.4 million. It was the fifth straight weekly decline.

Elsewhere, on the ICE Futures Exchange in London, Brent for July delivery hit a session low of $60.94, a level not seen since April 15, before turning higher to close at $63.31, up $1.28, or 2.06%. Despite Friday's gains, London-traded Brent futures lost $2.28, or 3.43%, on the week.

The Organization of Petroleum Exporting Counties decided on Friday to maintain its production levels at 30 million barrels per day for at least another six months, despite ongoing concerns over ample global supplies.

Meanwhile, the spread between the Brent and the WTI crude contracts stood at $4.18 a barrel by close of trade on Friday, compared to $5.26 in the preceding week.

Oil prices were down sharply earlier as the U.S. dollar surged as an upbeat jobs report raised expectations for an interest rate hike this fall.

The Labor Department reported that the U.S. economy added 280,000 jobs in May, the most since December and far more than the 225,000 forecast by economists.

The unemployment rate ticked up to 5.5% last month from 5.4% in April, while average hourly earnings rose by 0.3%, above expectations for a 0.2% increase.

The robust jobs report added to the view that the U.S. economy was regaining strength after contracting in the first quarter, fuelling speculation that the Federal Reserve could raise rates as early as September.

The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, jumped 0.93% to 96.38 late Friday.

In the week ahead, investors will be focusing on Thursday's U.S. retail sales report for May, as well as Friday's consumer sentiment data, for fresh indications on the strength of the economy and the timing of a rate increase.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Monday, June 8

Japan is to release revised data on first quarter economic growth.

Tuesday, June 9

China is to release data on consumer and producer price inflation.

The euro zone is to release revised data on first quarter economic growth.

The American Petroleum Institute, an industry group, is to publish its weekly report on oil supplies.

Wednesday, June 10

The U.S. will release its weekly report on oil inventories.

The Organization of Petroleum Exporting Counties will publish its monthly assessment of oil markets.

Thursday, June 11

China is to release a string of data, including reports on industrial production, fixed asset investment and retail sales.

The U.S. is to release reports on initial jobless claims and retail sales.

Meanwhile, the International Energy Agency will release its monthly report on global oil supply and demand.

Friday, June 12

The U.S. is to round up the week with data on producer price inflation and consumer sentiment.