|
Oil prices trading lower Friday, eyes on US unemployment
Published on December 4, 2009 by oilprices · 1 CommentOil prices slipped below $76 a barrel in trading on Friday in Asia ahead of US unemployment figures that will provide an important guide to the strength of the economic recovery and demand for crude oil. Oil traders have watched wider macroeconomic factors this year for signs of a turnaround in the economy that could support flagging fuel demand.
“The inventory situation is still providing a bearish backdrop. But the US dollar fell very close to recent lows versus the euro, providing a lift to energy.” said Tom Bentz, analyst at BNP Paribas Commodity Futures in New York.
Benchmark Light crude oil futures for January delivery was down 59 cents to $75.87 at midday Singapore time in electronic trading on the NYMEX, while in London, Brent crude oil futures for January delivery fell 52 cents to $77.84 on the ICE Futures exchange.
The US Labor Department announces later Friday the November 2009 unemployment rate and how many jobs the US economy lost last month. The jobless rate rose to 10.2 percent in October, a 26 year high.
The much awaited employment report will likely determine if oil finishes the week trading with a sell-off, Galena, Illinois-based Ritterbusch and Associates said in a report. “A bearish surprise within the jobless data could easily trigger a run at the $75 level.”
Crude oil prices have hung in the upper $70s for most of the last two months as investors wait for more evidence about how strong the US economic recovery will be. In recent months, demand for oil and products such as gasoline has remained weak.
Tags: oil prices, trading, US dollar, US unemployment
Like or Dislike, Vote Now:
0 
0
Crude oil futures are trading flat at this time as energy markets, just like the stocks and the currency markets, are awaiting tomorrow’s unemployment data in the US.
Guess the figures will show more US job losses :(