Oil rises above $96
NEW YORK — The price of oil closed above $96 Friday, after the government said the economy added 175,000 last month, a good sign for fuel demand.
Benchmark oil for July delivery gained $1.27, or 1.3 percent, to finish at $96.03 a barrel. Oil ended the week with a gain of 4.4 percent.
The oil market's initial reaction to the report from the Labor Department was negative. Oil fell as low as $93.72 a barrel. But the stock market gave the jobs numbers a thumbs-up, rising about 1 percent in early trading, and oil took off from there.
The job growth in May was at a steady pace that showed strength in the face of tax increases and government spending cuts. But the unemployment rate rose to 7.6 percent from 7.5 percent in April. That's because more people began looking for work. Only about three-quarters found jobs.
Analysts do not expect that the jobs growth will be strong enough to convince the Federal Reserve to pull back on the economic stimulus currently in place.