Oil prices spiked over a dollar higher as the hotly anticipated non-farm employment report gave another signal that the USA is in recovery mode. The world’s largest economy, and oil consumer, added 195,000 jobs in June despite estimates pointing to around 175,000. The unemployment rate meanwhile remained at 7.6%. Whilst clearly positive for oil demand, the brightening outlook for the American economy is also likely to shine the spotlight on the Fed’s plan for dollar printing. It is thought the news could prompt Ben Bernanke and co to taper their bond buying programme earlier than planned. Consequently the initial bullishness reined in somewhat shortly afterwards. In London trading Brent Crude futures were up around 70 cents at US$106.30, meanwhile West Texas Intermediary futures gained 76 cents to US$101.92.

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