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Oil Rises as Solid US Jobs Data Pushes Algos to Drop Short Bets

Mia Gindis and Nathan Risser

Fri, Jun 6, 2025, 7:44 AM 2 min read

West Texas Intermediate climbed about 2% to trade above $64 a barrel, on track for its largest weekly gain this year. Crude followed equities higher after US job growth in May narrowly surpassed economist forecasts, allaying concerns of near-term demand deterioration. The figures also pushed economy-sensitive diesel futures to a two-week high.

The positive economic data spurred commodity trading advisers to ease off of their bearish tilt. The funds, which can accelerate price momentum, liquidated short positions to sit at 27% short in WTI on Friday, compared with 64% short on June 5, according to data from Bridgeton Research Group.

The rally was supported by enduring risk-on sentiment from optimistic signs on trade talks between the US and China, the world’s largest importer of crude. President Donald Trump and his Chinese counterpart, Xi Jinping, agreed to further negotiations over tariffs and supplies of rare earth minerals.

The positive signals come against the backdrop of an oil market that has been increasingly rangebound in recent weeks. Prices have traded in a $5 band since the middle of May, and a gauge of volatility for US crude futures is at the lowest since early April.

Oil has been buffeted in Trump’s second term as trade tensions between the world’s two largest economies menace demand. At the same time, the OPEC+ alliance has been adding barrels back to the market at a faster-than-expected rate, further clouding an already weak outlook for the second half of the year.

--With assistance from John Deane.