Breaking News

Crude falls as strong jobs data sparks heavy dollar demand

CommoditiesMar 08, 2013 12:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Investing.com - Oil prices slid in afternoon trading on Friday after the U.S. government unveiled February jobs data that far exceeded expectations and fueled strong demand for the greenback, which made oil and other commodities more expensive in dollar denominated exchanges. 
On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD91.19 a barrel on Friday, down 0.40% and off from a session high of USD91.72 and up from an earlier session low of USD90.86.
The Bureau of Labor Statistics reported earlier that economy added 236,000 nonfarm payrolls in February, way more than an expected 160,000 increase and up above 119,000 reported in January.
The U.S. private sector added 246,000 jobs, beating expectations for a 167,000 increase, following January's 140,000 rise.
The headline unemployment rate fell to 7.7% in February from 7.9% in January, beating analysts' calls for the rate to remain unchanged.
The data came after the Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits fell by 7,000 to 340,000 last week, defying expectations for an increase of 8,000 to 355,000.
The numbers sparked heavy demand for dollars on sentiment the Federal Reserve will wind down stimulus programs designed to create job demand by flooding the economy with liquidity in a way that encourages investing.
Stimulus tools, including the Fed's monthly USD85 billion monthly bond-buying program known as quantitative easing, weaken the dollar as side effects, and Friday's jobs report stoked sentiments that such programs may wrap up sooner rather than later.
Meanwhile a North Sea pipeline reopened and eased supply fears, which allowed Brent prices too cool somewhat.
Elsewhere on the ICE Futures Exchange, Brent oil futures for April delivery were down 1.08% at USD109.95 a barrel, up USD18.76 from its U.S. counterpart.

Crude falls as strong jobs data sparks heavy dollar demand

Related Articles

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.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • 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.

Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post also to:
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Herb Marshall
Herb Marshall Mar 10, 2013 5:51AM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
confused the market went up all afternoon
0 0
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Please wait a minute before you try to comment again.
Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Add Chart to Comment
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.
Continue with Google
Sign up with Email