Oil rises to its highest level in a month and is heading for the biggest weekly gains in a year.

Oil prices rose during trading on Friday, reaching their highest levels since the end of August last year, as contracts for the year are on track to record their largest weekly gains in over a year, following the release of positive U.S. labor market data, which confirmed the resilience of the economy in the world's largest oil-consuming nation.

In terms of trading, the prices of Brent crude futures increased by 0.68% to record $78.15 per barrel, while the prices of West Texas Intermediate (WTI) crude futures rose by 0.62% to record $74.18 per barrel.

The data released today showed a stronger-than-expected performance in the U.S. labor market, with non-farm payrolls increasing by 254,000 jobs, significantly surpassing expectations that had predicted an increase of 147,000 jobs.

The positive job data led to a reassessment of expected interest rate cuts by the U.S. Federal Reserve. Although this may reduce demand for oil in the coming months, the continued resilience of the U.S. economy, as reflected in the data, provided some support for oil prices as well.

Crude oil prices rose by more than 8% this week, marking the largest weekly gain for oil since the end of August 2023. This came amid escalating conflicts in the Middle East and concerns over a potential wider escalation that could affect Iranian oil facilities. With little hope for a ceasefire agreement, fears of supply disruptions are increasing.