Oil Rebounds as NFP Miss Weakens Dollar: WTI, Brent, NatGas

Oil markets gained ground on Friday. The US dollar pulled back after the July nonfarm payrolls report missed expectations badly, showing only 57,000 jobs added against a 185,000 consensus. West Texas Intermediate crude climbed above $68 a barrel after testing the $66.50–$67.00 support zone. Brent crude moved back above $72. Natural gas remained near the $3.20–$3.25 level.

The jobs miss lowered bets on further Federal Reserve tightening. The dollar index declined. Treasury yields fell. For dollar-denominated commodities like crude, a weaker currency reduces the cost for foreign buyers, which tends to support prices.

WTI tested the $66.50–$67.00 floor during the session and bounced. The next upside target is the $70.50–$71.00 resistance area. Brent’s $72.00–$72.50 level, which had been support, now acts as near-term resistance. Both benchmarks saw their relative strength index dip into oversold territory, leaving room for a recovery if the dollar stays soft.

Natural gas prices were little changed after the Energy Information Administration reported a weekly storage build of 87 billion cubic feet, above the 81 Bcf consensus. Inventories are now 175 Bcf above the five-year average for this time of year. The $3.20–$3.25 support remains the key level to watch.

The market’s immediate focus is on the dollar’s next move. The July nonfarm payrolls report has shifted rate expectations, and traders are watching for follow-through in the coming sessions. The dollar index's path will be a key input for oil prices in the near term.