Oil ticked up on Monday as a possible hurricane system moving toward the U.S. Gulf Coast and markets bouncing back from a downturn triggered by Friday's weaker-than-anticipated U.S. employment data.

WTI added 1.06% to $68.39 per barrel while Brent futures advanced 71 cents at $71.77 per barrel.

Prices had surged by up to $1 during early trading in Asia before retreating.=

Analysts noted that the rebound was partly a response to the potential hurricane approaching the U.S. Gulf Coast.

The U.S. National Hurricane Center reported on Sunday that a weather system in the southwestern Gulf of Mexico is expected to develop into a hurricane before reaching the northwestern U.S. Gulf Coast. This region is responsible for about 60% of the U.S. refining capacity.

By Friday's close, Brent crude had fallen 10% for the week, hitting its lowest level since December 2021. Meanwhile, WTI dropped 8%, reaching its lowest closing price since June 2023, due to disappointing U.S. jobs data.

At the Friday close, Brent had dropped 10% on the week to the lowest level since December 2021, while WTI fell 8% to its lowest close since June 2023 on weak jobs data in the U.S.

Analysts suggested that the drop in the unemployment rate indicates the Federal Reserve is likely to implement a 25 basis point interest rate cut this month, rather than a reduction of 50 basis points.

Lower interest rates usually drive-up oil demand by fostering economic growth and reducing the cost of oil for those holding currencies other than the dollar.