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Oil price lower ahead of jobs report
Source: Agencies |
December 2, 2011, Friday
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OIL prices ended slightly lower yesterday after a four-day surge, as traders await a key US jobs report.
Benchmark crude fell 16 cents to finish at US$100.20 per barrel in New York. Brent crude lost US$1.27 to end the day at US$108.71 in London.
Prices had risen every trading day since Thanksgiving. They were boosted by tension over Iran's nuclear program, strong retail sales in the US and an effort by the Federal Reserve and central banks of other nations to increase the flow of dollars to foreign banks.
Now traders are awaiting the November unemployment report, which will be released by the Labor Department on Friday. High unemployment has been a drag on the economy and has cut into energy demand. Wholesale gasoline demand in November was at the lowest level in more than seven years.
"Everything's on hold right now," PFGBest analyst and oil trader Phil Flynn said. "We're a little worried about what those jobs numbers will be tomorrow."
Government data released yesterday suggested that the US jobs market remains weak. The number of people who applied for unemployment benefits rose above 400,000 last week for the first time in a month, the Labor Department said. Applications would need to fall below 375,000 for an extended period to cut into the nation's 9 percent unemployment rate.
Other reports gave a better reading on the economy. Manufacturing activity in the US rose in November to a seven-month high. Auto makers including Chrysler, General Motors and Ford reported big increases in sales last month. And builders spent more in October on homes, offices and shopping centers, though construction spending remains anemic compared with previous years.
Meanwhile, concerns about Iran continued to simmer. German authorities said yesterday they're investigating reports that Iran has been planning attacks on American targets in Germany. Iran was sharply criticized by Western nations this week after radical students attacked the British embassy in Teheran on Tuesday. They were protesting possible sanctions against Iran because of its nuclear program.
Iran is the world's third-largest oil exporter. Most of its crude goes to Asia. An embargo by European countries would likely have little impact and is viewed as unlikely by analysts.
In other energy trading, natural gas prices jumped 9.8 cents, or 2.8 percent, to end at US$3.648 per 1,000 cubic feet, after the government reported an unexpected decline in US supplies last week.
Heating oil fell by 5.56 cents to end at US$2.9695 per gallon, and gasoline futures were virtually unchanged, finishing the day at US$2.5579 per gallon.
Benchmark crude fell 16 cents to finish at US$100.20 per barrel in New York. Brent crude lost US$1.27 to end the day at US$108.71 in London.
Prices had risen every trading day since Thanksgiving. They were boosted by tension over Iran's nuclear program, strong retail sales in the US and an effort by the Federal Reserve and central banks of other nations to increase the flow of dollars to foreign banks.
Now traders are awaiting the November unemployment report, which will be released by the Labor Department on Friday. High unemployment has been a drag on the economy and has cut into energy demand. Wholesale gasoline demand in November was at the lowest level in more than seven years.
"Everything's on hold right now," PFGBest analyst and oil trader Phil Flynn said. "We're a little worried about what those jobs numbers will be tomorrow."
Government data released yesterday suggested that the US jobs market remains weak. The number of people who applied for unemployment benefits rose above 400,000 last week for the first time in a month, the Labor Department said. Applications would need to fall below 375,000 for an extended period to cut into the nation's 9 percent unemployment rate.
Other reports gave a better reading on the economy. Manufacturing activity in the US rose in November to a seven-month high. Auto makers including Chrysler, General Motors and Ford reported big increases in sales last month. And builders spent more in October on homes, offices and shopping centers, though construction spending remains anemic compared with previous years.
Meanwhile, concerns about Iran continued to simmer. German authorities said yesterday they're investigating reports that Iran has been planning attacks on American targets in Germany. Iran was sharply criticized by Western nations this week after radical students attacked the British embassy in Teheran on Tuesday. They were protesting possible sanctions against Iran because of its nuclear program.
Iran is the world's third-largest oil exporter. Most of its crude goes to Asia. An embargo by European countries would likely have little impact and is viewed as unlikely by analysts.
In other energy trading, natural gas prices jumped 9.8 cents, or 2.8 percent, to end at US$3.648 per 1,000 cubic feet, after the government reported an unexpected decline in US supplies last week.
Heating oil fell by 5.56 cents to end at US$2.9695 per gallon, and gasoline futures were virtually unchanged, finishing the day at US$2.5579 per gallon.
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