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Crude gains on weak U.S. unemployment report

Published 04/06/2012, 03:07 PM
Updated 04/06/2012, 03:11 PM
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Investing.com - Crude oil futures rose slightly after news broke that the U.S. economy added less jobs in March than expected, which fueled sentiment the Federal Reserve may reconsider stimulating the economy, which often pumps up oil prices.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in May last traded at USD103.25 a barrel, up 0.06%, down from a session high of 103.27 and up from an earlier session low of USD103.08 in thin holiday trading.

In the U.S., the Bureau of Labor Statistics reported the economy added a net 120,000 nonfarm payrolls in March, well below the range of most market expectations.

The government revised February’s payrolls to 240,000 from 227,000, but cut January's figure by 9,000 to 275,000.

The numbers sparked some expectations that the Fed would be grow more inclined to buy assets held by banks to spur the economy.

Such easing measures inject liquidity into the financial system that can find its way into commodities markets and send oil rising.

Rising inventories in the U.S., however, tempered oil's gains, plus weak jobs numbers also depict an economy still struggling to recover and in need of less oil to fuel less growth.

On the ICE Futures Exchange, Brent oil futures for May delivery were down 0.01% and trading at USD123.30 a barrel, up USD20.05 from its U.S. counterpart.





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