Crude oil prices started Friday in volatile territory after the U.S. government reported the economy added more jobs in July, though key metrics were unchanged.

Crude oil prices rallied during the latter half of the week after a brief dip below $40 per barrel. Federal U.S. data show a mixed picture for a market trying for balance between supply and demand, a situation evident by strong intra-day swings in crude oil prices.

Oil turned negative in overnight trading, recovered briefly before the opening bell on Wall Street and then slipped again after the U.S. Commerce Department reported jobs data for July.

The price for Brent crude oil was relatively unchanged from the previous close to start trading at $44.21 per barrel. West Texas Intermediate, the U.S. benchmark for the price of oil, lost 0.2 percent to open at $41.38 per barrel in New York.

Private payroll processor ADP reported gains in employment in July. Official date from the U.S. Bureau of Labor Statistics show 255,000 jobs added to payrolls in July, though the overall unemployment rate was unchanged at 4.9 percent.

The trajectory for crude oil prices may be influenced later in the day when oilfield services company Baker Hughes releases weekly data on rig activity. A loose metric on exploration and production trends, the company already reported a net gain for July, with Canada showing a dramatic recovery in the wake of the May wildfires that curbed output there.

The recovery in rig activity may give support to comments from energy companies who said in their second quarter earnings reports that production could increase during the latter half of the year as market prices hold steady.

Further influence for oil prices by way of demand pressures may be apparent in U.S. jobs data showing the number of long-term unemployed, those without a job for 27 weeks or more, was unchanged over the month. That figure accounts for about a quarter of the unemployed in the United States.

Oil prices inch lower after Wednesday's rally
New York (UPI) Aug 4, 2016 - Crude oil prices drifted somewhat lower at the start of Thursday trading, balanced between a rare rate cut by the Bank of England and U.S. labor data.

Oil prices posted strong gains Wednesday after fits and starts for the week after the U.S. Energy Information Administration reported a drop in U.S. crude oil production, suggesting the market was tightening up somewhat.

Anthony Starkey, a lead manager at Platts Analytics, cautioned against too much optimism in weekly figures, noting that production in the Lower 48 actually remained flat, marking the first time since early March that production didn't drift lower.

"Given the spate of selling that crude has endured over recent weeks, a sizable gasoline draw and headline drop in total U.S. production is likely enough to keep the market supported in the short term, though bigger questions remain on the health of the global oil supply and demand picture," he said in emailed commentary.

Crude oil prices moved lower after Wednesday's strong rally. The price for Brent crude oil was down 0.7 percent to open in New York at $42.77 per barrel. West Texas Intermediate, the U.S. benchmark price for oil, was down 0.4 percent at the start of trading to $40.65 per barrel.

Some negative pressure emerged after the U.S. Labor Department reported an increase of 3,000 in first-time claims for unemployment, though at a seasonally adjusted level of 269,000, data show job prospects in the United States remain robust. Private payroll processor ADP reported this week companies were hiring more in July.

According to the Labor Department, gas-rich eastern U.S. and Great Lakes states were among those posting the largest increases in initial claims, with little movement for oil states like Texas and North Dakota.

Overseas, the Bank of England said it was cutting its bank rate for the first time in years as it works to meet the inflation target of 2 percent in the wake of the June decision to leave the European Union.

"Following the United Kingdom's vote to leave the European Union, the exchange rate has fallen and the outlook for growth in the short to medium term has weakened markedly," the bank said in a policy statement.