Brent climbs towards $104, U.S jobs data eyed

 

Brent crude rose towards $104 a barrel on Friday ahead of U.S. jobs figures that may show the economy is quickening in the world's top oil consumer.

 

Oil, along with gold, was also supported as the dollar fell ahead of U.S. nonfarm payrolls that may have risen by 145,000 in April after hitting a nine-month low of 88,000 in March.

 

Oil got a shot in the arm on Thursday after the European Central Bank cut interest rates to record lows, boosting investor appetite for riskier assets.

 

Brent crude was 68 cents higher at $103.53 a barrel by 1047 GMT, while U.S. crude was up 56 cents at $94.55.

 

"They were boosted first and foremost by the prospect of the ECB adopting even looser monetary policy, though buoyancy also came in the form of hopes of a good labour market report in the afternoon following a reduced number of initial jobless claims," said a Commerzbank research note.

 

With the ECB and Fed decisions out of the way, investors are now turning their attention to key U.S. nonfarm payrolls data expected later in the day.

 

But weak manufacturing activity in the United States and China is still clouding the outlook for oil demand from the top two consumers.

 

"I think the PMIs which we've seen this week still remind us that in China we need to see further evidence of stabilisation, and in the United States we want to see signs that are a little less stop-start," said Ben Taylor of Sydney-based CMC Markets.