Oil eased on Friday after a rally the previous day, but prices remained set for a second straight weekly gain as investors weighed the impact of hurricane damage on U.S. demand against any broad supply disruption if Israel attacks Iranian oil sites. Brent crude oil futures fell 39 cents, or 0.5%, to $79.01 a barrel. U.S. West Texas Intermediate crude futures dropped 32 cents, or 0.4%, to $75.53 per barrel. For the week, both benchmarks were headed for a 1%-2% gain. In the United States, Hurricane Milton plowed into the Atlantic Ocean on Thursday after cutting a destructive path across Florida, killing at least 10 people and leaving millions without power. The destruction could dampen fuel consumption in some areas of the world's largest oil producer and consumer. Crude benchmarks spiked this month after Iran launched more than 180 missiles against Israel on Oct. 1, raising the prospect of retaliation against Iranian oil facilities. Israel has yet to respond, and crude benchmarks have eased and remained relatively flat through the week. Iran is backing several groups fighting Israel, including Hezbollah in Lebanon, Hamas in Gaza and the Houthis in Yemen. In Lebanon, Israeli strikes on central Beirut on Thursday night killed 22 people and wounded at least 117, Lebanon's health ministry said. Lebanese security sources said at least one senior Hezbollah figure was also targeted in the attacks. Gulf states, meanwhile, are lobbying Washington to stop Israel from attacking Iran's oil sites, out of concern their own oil facilities could come under fire from Tehran's proxies if the conflict escalates, three Gulf sources told Reuters. On the supply side, Libya's National Oil Corporation (NOC) said on Thursday it has restored production close to levels before the country's central bank crisis, reaching 1.22 million barrels per day.

The U.S. dollar fell from two-month highs hit overnight versus its major peers after signs of weakness in the labour market boosted the case for quicker Federal Reserve rate cuts. Despite that, the dollar on Friday remained on track for a second straight weekly advance after surprisingly strong monthly payrolls figures last week prompted traders to take bets for a half-percentage-point cut at the Fed's next policy meeting off the table. The market's interpretation of Thursday's surge in initial jobless claims was complicated by an uptick in the consumer price index (CPI) the same day, which served as a reminder that restrictive monetary policy may be required to bring inflation under control. Bets for a quarter-point Fed rate cut on Nov. 7 increased to 83.3% from 80.3% a day earlier, with the remaining odds for policy to stay steady, according to the CME Group's FedWatch Tool. A week earlier, there was a 32.1% chance of a half-point reduction and 67.9% probability of a quarter-point cut. The two-year U.S. Treasury note yield , which typically moves in step with interest rate expectations, fell on the day, and was down at 3.9531% early on Friday, keeping the dollar under pressure. While the Fed has signaled a shift in its focus towards full employment over price stability, investors had been looking to the CPI print for confirmation that inflation was coming under control. The dollar added 0.06% to 148.68 yen , inching back towards Thursday's high of 149.58 yen, a level previously not seen since Aug. 2. Australia's currency has been buffetted this week by a waxing and waning in stimulus expectations in the nation's biggest trading partner, China. China's finance ministry is scheduled to hold a news conference on fiscal policy on Saturday.

The copper price rebounded on Thursday after hovering near a two-week low, as the market sizes up the implications of China’s policy briefing this weekend. Copper for December delivery increased by 1.1% from Wednesday’s settlement, reaching $4.44 per pound ($9,768 per tonne) in early morning trade on the Comex in New York. Enthusiasm for China’s pro-growth pivot has cooled as investors await clearer signs that the government will implement policies — such as infrastructure investment — to boost commodity demand. Finance Minister Lan Fo’an is set to speak on Saturday at an event now seen as key to assessing the government’s commitment to further capital spending. Stability in the real estate sector and stronger equity markets could improve consumer sentiment, potentially sparking an economic rebound and stronger demand for commodities.