OIL EDGES LOWER AFTER US DATA DEFLATES NEAR TERM RATE CUT EXPECTATIONS

Oil fell slightly and was set for a third straight weekly loss after strong U.S. jobs data on Friday lowered expectations of the U.S. Federal Reserve cutting interest rates soon. Brent crude futures were down 16 cents to $79.71 a barrel at 11:42 a.m. EDT (GMT 1542), while U.S. West Texas Intermediate crude futures fell 1 cent to $75.54.

Data showed U.S. jobs growth accelerated far more than expected in May, keeping the Fed on track to hold off starting to cut interest rates until September at the earliest. Major Western economies have imposed high or record-high interest rates for a protracted period to quash inflation. High borrowing costs can slow economic activity and dampen demand for oil.

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