Oil gains as rosier demand outlook, weaker dollar boost prices

Oil recovered some recent losses as signs that the labor market is cooling calmed fears that the Federal Reserve will take a more forceful rate hike path.

A gain in weekly jobless claims reported Thursday outstripped expectations, indicating economic softness that could prompt the Fed to shy away from aggressive rate hikes that could provoke a sharper downturn. The data also weakened the dollar, making it more expensive to purchase the commodity.

The lift from the labor market data was limited amid persistent headwinds, including a tepid economic forecast from China and increased US stockpiles this year.