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 LeadersCalendar 

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
03:40p Brexit donor's company spells out risks of quitting EU
03:34p CARMAX : opens in Bloomington, donates to charities
03:31p NIKON : During the First 360-Degree Big Game Broadcast, Nikon Teases Its Revolutionary New Camera – Nikon KeyMission 360
03:20p AT&T : Google Fiber's Austin rollout trudges onward
03:18p ALEXANDER : Marauders fend off Spartans
03:17p GAMESTOP : BRIEF: City police investigate armed robbery on far north side
03:16p LUCARA DIAMOND : Press Conference
03:14p BRITISH AMERICAN TOBACCO : faces call for bribery allegations inquiry
03:11p DAAR COMMUNICATIONS : N150 Billion Suit - Ait, Tinubu Reach Out-of-Court Settlement
02:58p LUCARA DIAMOND : Press Conference
Latest news
Advertisement
Hot News 
ANDALAS ENERGY AND POWER : & Power signs heads of agreement to farm-in to Indonesian gas project
GWG : CEO Jon Sabes Appears on TheStreet.com
Technology rout pushes Nasdaq to lowest close since 2014
Lions Gate Plummets Amid Lack of Earnings Guidance
LINKEDIN : forecasts weak first-quarter profit, shares plunge
Most Read News
02/05 CLIFFORD CHANCE LLP : advises on sale of the Isaac Plains Coal Project by Sumitomo Corporation and Vale
02:37a HNA Tourism Named Best Tourism Investment Group at 2016 World Tourism Forum
02/05 FOX, ABC Outlets in LA to Air AHF Condom Ad during Prime Time
07:01a REMINDER/MEDIA ADVISORY : Itinerary for the Prime Minister, Justin Trudeau, for Saturday, February 6, 2016
02/05 BEIJING MUNICIPAL GOVERNMENT : China stops approving new coal mines
Most recommended articles
02:37p Seven countries call for EU action to help steel industry
02:24p Investors cheer Argentina's swift offer to holdouts
10:16a German competition watchdog wants 'big data' hoards considered in merger probes
09:35a CHINA PETROLEUM & CHEMICAL : starts investigation of Sinochem Group president Cai Xiyou
07:43a PEUGEOT : Iran says Peugeot would pay compensation for withdrawal during sanctions