Brent, WTI heading for weekly drop, after falling in June
Supply tightness more likely to intensify from here PVM
U.S. job growth beats expectations in June

NEW YORK, July 8 Reuters Oil prices rose about 2 in volatile trade on Friday but were still heading for a weekly decline as investors worried about a potential recessiondriven demand downturn even though global fuel supplies remained tight.

Central banks around the world are raising interest rates to tame inflation, spurring fears that rising borrowing costs could stifle growth, while mass COVID19 testing in Shanghai this week caused worries about potential lockdowns that could also hit oil demand.

Brent crude futures rose 2.46, or 2.4, to 107.11 a barrel by 113 p.m. EDT 1713 GMT. U.S. West Texas Intermediate crude rose 2.10, or 2, to 104.83 a barrel. Both benchmarks traded in negative territory and then rebounded from session lows.

Brent remained on track for a weekly decline of about 4.1 and WTI a loss of 3.4, following on from the first monthly decline since November. Prices tumbled on Tuesday, when Brent39;s 10.73 drop was the contract39;s thirdbiggest daily fall since it started trading in 1988.

U.S. nonfarm jobs data showed job growth increased more than expected in June, a sign of persistent labor market strength that gives the Federal Reserve ammunition to deliver another 75basispoint rate hike this month. 

The oil market is looking at the jobs report as a doubleedged sword, said Phil Flynn, analyst…