Crude oil futures flipped Friday morning’s losses into gains, closing above $96 per barrel on Friday. On the week, oil rallied around 4.4 percent.
Investors applauded Friday’s jobs report, sending oil to its highest level since May 21. Some of the week’s negative economic sentiment turned positive after the economy added 175,000 jobs for the month, prompting crude to react positively to the better-than-expected number.
U.S. supply numbers were another driving force for the week’s rally in oil. On Tuesday, the API announced that crude supplies fell 7.8 million barrels, which was almost eight times more than expected.
Oil analysts also believe that tensions in the Middle East could threaten global supplies. According to Reuters, political sanctions have driven Iran’s oil exports to its lowest in decades. Iran is the world’s third largest oil exporter and has reportedly lost two thirds of its exports following its latest round of sanctions.
The Syrian civil war also remains a threat to global oil supplies. While Syria is far down the list of the world’s largest oil exporters, any form war in the region is a major threat to send oil prices higher if tensions escalate.
Despite the 4.4 percent rally in oil, most of the major integrated oil and gas companies traded flat for the week. For the week, Chevron (CVX) fell 0.86 percent, BP (BP) rose 0.09 percent, Exxon Mobil (XOM) rose 1.08 percent, and Conoco Philips (COP) gained 1.60 percent after a market rally late Friday afternoon.