U.S. crude oil futures ticked higher on Monday after tumbling 2 percent in the previous session as the dollar climbed on robust U.S. employment data which raised bets for an interest rate hike this year.
U.S. crude for December delivery was up 14 cents at $44.43 a barrel by 0038 GMT after touching a 1-1/2-week low of $43.83.
Brent crude gained 10 cents to $47.52 per barrel after a three-day slide.
U.S. nonfarm payrolls rose 271,000 last month, far exceeding the 180,000 increase that economists polled by Reuters had predicted.
It was the biggest monthly increase since December 2014, with the unemployment rate now at its lowest level since April 2008 and is in a range many Fed officials see as consistent with full employment.
Interest rates futures were pricing in a 70 percent probability that the U.S. central bank will raise borrowing costs next month, according to the CME Group’s FedWatch.
China’s trade figures disappointed analysts expectations by a wide margin in October, reinforcing views that the world’s second-largest economy will have to do more to stimulate domestic demand given softness in overseas markets.
Hedge funds raised their bullish wagers on U.S. crude this week by the most in six months as speculators bought into oil contracts in forward months on the bet market fundamentals will take time to improve.
The discount for prompt U.S. crude futures fell to its deepest level in six months on Friday, as traders sold off December positions amid bearish indications in physical crude markets.
The dollar remained aloft in Asian trade, after soaring to nearly seven-month highs against a basket of currencies as strong U.S. jobs data prompted more investors to expect an interest rate increase this year. Asian stocks slipped.