Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

OIL FUTURES : Nymex Crude Drops Below $98/Bbl After Jobs Data

05/04/2012 | 12:18pm US/Eastern

--Crude oil plummets below $98/bbl for first time since February

--Weak US jobs data tip market lower, though bearish signs have been building

--Futures down 10% from recent highs

 
   By Dan Strumpf and Ben Lefebvre 
   Of  
 

U.S. crude-oil futures plunged below $98 a barrel for the first time since February, giving up more than $4 after a weaker-than-expected U.S. jobs report.

Light, sweet crude oil for June delivery recently traded $4.36, or 4.2%, lower at $98.18 a barrel on the New York Mercantile Exchange. Brent crude oil on ICE Futures Europe fell $3.88, or 3.3%, to $112.22 a barrel.

The benchmark U.S. contract tipped below $100 a barrel in the aftermath of the jobs report, then continued its slide through the morning.

The Labor Department said U.S. nonfarm payrolls rose by 115,000 in April, less than the gain of 168,000 expected by economists surveyed by Dow Jones Newswires. The unemployment rate fell a tenth of percentage point to 8.1%.

Employment data in the U.S., the world's biggest oil consumer, is a closely watched indicator of fuel and oil demand. Weak employment data usually correlate with lackluster demand as fewer motorists travel to work or take vacations.

The jobs report, though disappointing, "wasn't catastrophic," said Andy Lebow, senior vice president of energy futures at Jefferies Bache. But it came on the heels of downbeat economic data from both the U.S. and Europe and further erodes confidence in the broader economy.

"The global economy has given indication for weeks that it's slowing down," he said.

Earlier this week, Spain disclosed that it is officially in a recession, while a survey of economic activity in the euro zone in April found a faster contraction than previously thought.

Meanwhile, Saudi Arabia, the world's largest oil exporter, has increased production to 10 million barrels a day in recent months. And oil inventories in the U.S. continue to swell, rising 10% over the last 10 weeks amid weak demand for crude oil.

Nymex crude-oil futures have fallen more than 10% since hitting a recent settlement high of $109.77 a barrel in late February. Brent crude oil, the European benchmark, has seen an even steeper fall, dropping more than 11% from its recent high earlier this year.

The U.S. jobs data also follow two months of weaker-than-expected employment growth. Traders who thought that the earlier figures were an exception are now worrying that they may be the rule, said Jason Schenker, energy analyst at Prestige Economics.

"If anyone had an inkling of bearish sentiment, today's the day to pull out fast," he said.

Front-month June reformulated gasoline blendstock, or RBOB, recently fell 9.11 cents, or 3%, to $2.9589 a gallon. June heating oil fell 9.89 cents, or 3.2%, to $2.9880 a gallon.

-By Dan Strumpf, Dow Jones Newswires; 212-416-2818; dan.strumpf@dowjones.com.

React to this article
Latest news
Date Title
08:55p PAN ASIA ENV PROTECTION : Voluntary announcement proceedings against chairman
08:55p KONICA MINOLTA : Acquires Sawae, Enhancing Digital X-ray Diagnostic Imaging Systems in Brazil
08:54p ECOPETROL : Standard & Poor's Maintains Ecopetrol S.A.'s Long Term Corporate Credit Rating at BBB
08:50p STONEHENGE METALS : Wave Energy Prize Registration
08:50p OIL SEARCH : Drilling Report for June
08:50p BHP BILLITON : New Mexico Coal Executes Final Sale Agreement for San Juan Mine
08:50p ACCENTURE : Amadeus to Acquire Navitaire from Accenture for US$830 Million; Amadeus and Accenture Form Alliance to Create Passenger-Focused Digital Services For Airlines
08:50p GEELY AUTOMOBILE : Monthly Return for the month ended 30/06/2015
08:50p WAL MART STORES : BRIEF: Man, 74, walks out of Walmart with $360 worth of wine, deputies say
08:50p Material Fact - PetroRio to Acquire the Petrobras Stake and Consolidates 100% of Bijupirá and Salema Oil Fields
Latest news
Advertisement
Hot News 
DOMINO PRINTING SCIENCES : Patent Issued for Marking And/Or Coding
ACIO HLDG : Federal judge enters permanent injunction against Acino Products, LLC
SPEEDY HIRE : Dealt Triple Blow As Results To Miss Expectations (REPEAT)
BETTER CAPITAL PCC : Reports Contrasting Results For 2009 And 2012 Cells
GRAHAM : Completes Spin-off of Cable ONE
Most Read News
06:10p U.S. sues to stop Electrolux acquiring GE's appliance business
07:37p PayPal to buy digital money transfer provider Xoom
06:18p Former U.S. agent pleads guilty to bitcoin theft in Silk Road probe
07:11p TJX : Companies should invest more in workforce to ease UK productivity woes - CIPD
06:25p BM&F BOVESPA : BM&FBOVESPA presents the results of the closed hearing for the Corporate Governance Program for State-Run Companies
Most recommended articles
08:49p Asia shares subdued by Greek anxiety, dollar stands tall
08:48p ArcelorMittal Mexico unit to slash 2,800 jobs
08:45pDJCash Crunch Hits Everyday Life in Greece
08:45pDJProxy Advisory Firm Recommends Shareholders Reject Samsung Merger
08:40p GBP/USD TECHNICAL ANALYSIS : Range Bottom Gives Way