💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Brent oil steady near $115 on storms, US jobs package

Published 09/08/2011, 11:06 PM
Updated 09/08/2011, 11:08 PM
LCO
-
CL
-

* Brent on track to gain more than 2 pct this week

* Obama faces uphill fight in passing jobs package

* Tropical storm Nate could become hurricane on Fri

By Randy Fabi

SINGAPORE, Sept 9 (Reuters) - Brent crude oil edged up towards $115 a barrel on Friday, after falling more than a dollar in the previous session, supported by storm threats and the U.S. president's latest plan to revive the world's largest economy.

Brent for October delivery was on track for a weekly gain of more than 2 percent this week, trading up 35 cents at $114.90 a barrel by 0247 GMT.

U.S. crude oil rose 40 cents to $89.45 a barrel and was set to gain more than 3 percent this week.

Concerns over economic growth and tepid demand for oil continue to be the main pressure points for the oil markets, offsetting bullish sentiment from Libya's civil war, hurricanes and a battered U.S. dollar.

"The question for the oil market is on demand destruction and how confident the consumer is, both of which are very uncertain," said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong.

"If European and U.S. policymakers can find some compromise and willingness to work together before economics force their hand, then that is bullish for oil. But I think we will probably see the market grind sideways," Friesen added.

JOBLESS PROBLEM

U.S. President Barack Obama unveiled a $447 billion package of tax cuts and new spending to revive a stalled job market but he faces an uphill fight with Republicans.

The number of Americans filing new claims for jobless benefits rose unexpectedly last week, according to Labor Department data released just hours before Obama's speech to Congress.

Federal Reserve Chairman Ben Bernanke, also highlighting an elevated jobless rate and sluggish underlying growth, hinted the central bank may ease monetary policy further at its September meeting.

But investors were disappointed he did not offer details on what measures Fed policymakers would pursue, sending the Dow Jones Industrial Average down more than 100 points on Thursday.

The U.S. dollar index barely reacted to Obama's job package, trading down 0.24 percent to 76.065.

Oil found continuing support from the busy 2011 hurricane season in the Atlantic.

Tropical Storm Nate, the 14th named storm, was gaining strength and could become a hurricane on Friday or Saturday, the U.S. National Hurricane Center said.

The tropical storm has prompted producers in the Gulf of Mexico to begin another round of evacuations of nonessential workers.

The U.S. Energy Information Administration said commercial oil inventories fell nearly 4 million barrels last week, far deeper than the forecast for a 1.9 million barrel drawdown.

Inventories dropped as imports slid more than 1 million barrels per day with offloading hampered by Hurricane Irene's passage through the East Coast that also compelled refineries to cut utilization rates by more than a quarter. (Editing by Clarence Fernandez)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.