Oil prices saw a modest increase in Asian trading on Friday, heading for a weekly gain of over 3% as U.S. jobs data eased demand concerns and fears of an expanding military conflict in the Middle East persisted.

• Brent crude futures rose by 2 cents, or 0.03%, to $79.18 per barrel. U.S. West Texas Intermediate (WTI) crude futures increased by 10 cents to $76.29 per barrel. Both Brent and WTI were set to record weekly gains of over 3%.

• Risk sentiment recovered from the market downturn during the Asian session, with Chinese inflation data offering positive economic signals. U.S. jobs data also supported oil prices.

• Chinese consumer price index (CPI) data released on Friday showed a slightly faster increase than expected, rising by 0.5% year-over-year in July, compared to a 0.2% rise in June. This exceeded the anticipated 0.3% increase.

• The rise in prices led to gains in Chinese stocks, although analysts attributed the higher prices to weather disruptions affecting food supplies and cautioned that there were few signs of a rebound in consumer demand.

• Sentiment in the U.S. was bolstered after data showed a larger-than-expected decline in the number of Americans filing new unemployment claims last week, suggesting that fears of a deteriorating labor market were exaggerated and recession concerns were easing.

• The dollar rose based on the jobs data. Typically, a stronger dollar tends to lower oil prices, as buyers using other currencies have to pay more for dollar-denominated oil.

• Crude oil continued its recovery from recent declines as significant geopolitical and military risks came into focus.

• In the Middle East, the King of Saudi Arabia, the world's largest oil exporter, issued a decree allowing the cabinet to meet in his absence and the absence of the Prime Minister, according to official media reports on Thursday.

• Markets in the key oil trading hub of Singapore remained closed due to a public holiday.

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