We have updated our privacy policy and terms & conditions. Find out more here.
1
 

Crude oil plunges on NFP, political uncertainty

By Investing.comCommoditiesMay 04, 2012 05:52PM GMT Add a Comment
 
AA
+
-
Investing.com - Crude oil futures dropped to their lowest levels in three weeks Friday, as weaker than expected nonfarm payrolls combined with eurozone political uncertainty to continue the oil bearish sentiment.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at USD97.89 a barrel, giving back 4.56%.

Crude oil plunges on NFP, political uncertainty
Fanning the oil bearish sentiment, U.S. nonfarm payrolls advanced less-than-expected last month, official data showed on Friday.

The U.S. Department of Labor reported non-farm payrolls climbed to a seasonally adjusted 115K, from 154K in the preceding month whose figure was revised up from 120K.

Economists had expected U.S. non-farm payrolls to rise 170K last month.
Adding to the uncertainty, France and Greece will hold elections over the weekend.

French voters will decide on the final round of the countries presidential race and Greece will be voting on a new parliament.

Francois Hollande, the Socialist challenger for the French highest office, is the leading incumbent. He is calling for a re-negotiation of the budget pact with European leaders, saying it needs to place more of an emphasis on growth. He has rejected Sarkozy’s plan to increase sales taxes to fund lower payroll charges.

Meanwhile in Greece, neither of the two major political parties, New Democracy and Socialist Pasok is likely to win the majority.
On Thursday,  the U.S. Energy Information Administration said oil stockpiles increased by 2.84 million barrels to 375.9 million last week.

A separate report showed that factory orders in the U.S. declined in line with expectations in March, falling 1.5%, following a 1.1% increase the previous month.

In addition, fears over the economic outlook for the euro zone weighed on market sentiment after final euro zone manufacturing data for April slumped to a 34-month low, while the unemployment rate in the bloc climbed to a record 10.7% in March.

The euro zone data also indicated that the effects of the crisis in the region are spreading to core economies.

German manufacturing output fell at the fastest rate since July 2009, with its manufacturing PMI tumbling to 46.2, from 48.4 in March, while a separate report showed that the German unemployment rate also rose last month.

On the ICE Futures Exchange, Brent oil futures for June delivery plunged 0.88% to trade at USD115.06 a barrel, up USD13.94 from its U.S. counterpart.




Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Brent Oil
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg