Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

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

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/04/2012 | 06:18pm CET

--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.

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
11:18p INTERSECT ENT, INC. : Change in Directors or Principal Officers, Financial Statements and Exhibits (form 8-K)
11:16p BANK OF NOVA SCOTIA : S&P Dow Jones Indices Announces Changes to the S&P/TSX Canadian Indices
11:16pDJNEWS HIGHLIGHTS : Top Global Markets News of the Day
11:16pDJNEWS HIGHLIGHTS : Top Company News of the Day
11:16p J M SMUCKER : Declares Dividend
11:16p CONSTELLATION SOFTWARE INC. : Announces Annual Interest Rate for Series 1 Debentures
11:15p INFINITY DEVELOPMENT : Notice of annual general meeting
11:15p INFINITY DEVELOPMENT : Proposed payment of final dividend and closure of register of members
11:15p Lanakila Baptist Students to Rally at State Capitol
11:14p LENNAR CORP /NEW/ : Other Events, Financial Statements and Exhibits (form 8-K)
Latest news
Advertisement
Hot News 
-11.28%Bristol-Myers lung cancer delay slams shares, keeps Merck in lead
-2.18%GENERAL ELECTRIC : Nason, former Treasury official, being vetted for Fed role - sources
12.40%SYNTHOMER : Chemicals maker Synthomer sees 2016 profit ahead of estimates
2.45%Rockwell Collins Confident on Jet Ramp -- 2nd Update
2.24%IBM revenue fall dims upbeat profit forecast
Most Read News
09:33a BLACKROCK : Fears of economic 'race to bottom', strong dollar in Davos
02:05p GENERAL ELECTRIC : GE looks for sharp cut in corporate tax rate under Trump
12:16aDJNEWS HIGHLIGHTS : Top Energy News of the Day
05:54a WESTERN UNION : admits to aiding wire fraud, to pay $586 million
01/19 TESLA MOTORS : U.S. regulator finds no evidence of defects after Tesla death probe
Most recommended articles
01/17DJS&P 500, Nasdaq Futures -- Technical Analysis
05:09p MORGAN STANLEY : CEO James Gorman's 2016 pay up 7 percent to $22.5 million
05:09p JAMES GORMAN : Morgan Stanley CEO James Gorman's 2016 pay up 7 pct to $22.5 million
05:00pDJCorn Rises on Fund Buying; Soybeans Decline
04:58pDJCorrection to inauguration donors article