Oil steadies ahead of key US jobs report

Prices steady after early decline

Oil prices steadied on Friday after an early decline, as traders awaited a key US jobs report that could provide clues about the health of the world's largest economy. Brent crude futures were down 15 cents at $87.67 a barrel by 0830 GMT. US West Texas Intermediate (WTI) crude futures were at $81.49 a barrel, down 13 cents.

Focus on US jobs report

The US Labor Department is due to release its monthly jobs report at 1330 GMT. The report is expected to show that the US economy added 200,000 jobs in December, down from 263,000 in November. The unemployment rate is expected to hold steady at 3.7%.

A strong jobs report could boost the dollar and weigh on oil prices, as it would increase the likelihood of further interest rate hikes by the US Federal Reserve. Higher interest rates make the dollar more attractive to investors, which can reduce demand for oil and other commodities priced in dollars.

However, a weaker-than-expected jobs report could boost oil prices, as it would reduce the likelihood of further interest rate hikes. Lower interest rates make the dollar less attractive to investors, which can increase demand for oil and other commodities priced in dollars.

Traders will also be keeping an eye on developments in China, the world's largest importer of crude oil. China's economy has been slowing in recent months, which has weighed on oil demand. However, there are signs that the Chinese economy is beginning to recover, which could boost oil demand in the coming months.