Investing.com - Crude oil futures came under heavy selling pressure on Monday, trading close to a two-month low as concerns over the global economic outlook were exacerbated after Friday’s dismal U.S. jobs report and Chinese data showing inflation accelerating at a faster pace than expected.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD102.07 a barrel during European morning trade, tumbling 1.2%.
It earlier fell by as much as 0.95% to trade at a daily low of USD101.89 a barrel. Oil futures fell to USD101.07 a barrel last Wednesday, the lowest since February 15.
NYMEX electronic and floor trading was closed on Friday in observance of Good Friday. Trading volumes were expected to be thin as markets in the U.K. and the euro zone will remain closed due to the Easter holiday.
Oil traders had their first chance to react to Friday’s U.S. jobs report. The U.S. Department of Labor said nonfarm payrolls rose by a meager 120,000 in March, the lowest since December and well below expectations for a 203,000 increase.
It was the first time since November that hiring failed to top the 200,000 level, renewing concerns over the health of the U.S. economy.
The unemployment rate ticked down to 8.2%, the lowest since January 2009, from 8.3% in February. However, the data showed that the decline stemmed entirely from people dropping out of the labor force.
The weaker-than-expected jobs report broke a string of strong employment gains in recent weeks, raising questions about the health of the U.S. economy.
The U.S. was the world’s largest oil consuming country in 2011, responsible for 22% of global oil demand.
Meanwhile, official data released earlier showed that consumer price inflation in China accelerated by 3.6% in March, up from 3.2% in February and above expectations for a 3.3% increase.
The higher-than-expected reading dampened expectations Beijing will introduce fresh monetary easing measures in the near-term to prop up the world’s second largest economy.
Market players have been searching for clues in regards to Chinese growth prospects amid fears the country is headed towards a ‘hard landing’. The Asian nation is set to release government data on the size of its economy on April 13.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
Meanwhile, markets continued to monitor tensions between Iran and the West. Iran and six world powers will meet in Turkey on April 13 and 14 for a round of talks over Tehran's disputed nuclear program.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery fell 0.8% to trade at 121.88 a barrel, with the spread between the Brent and crude contracts standing at USD19.81.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD102.07 a barrel during European morning trade, tumbling 1.2%.
It earlier fell by as much as 0.95% to trade at a daily low of USD101.89 a barrel. Oil futures fell to USD101.07 a barrel last Wednesday, the lowest since February 15.
NYMEX electronic and floor trading was closed on Friday in observance of Good Friday. Trading volumes were expected to be thin as markets in the U.K. and the euro zone will remain closed due to the Easter holiday.
Oil traders had their first chance to react to Friday’s U.S. jobs report. The U.S. Department of Labor said nonfarm payrolls rose by a meager 120,000 in March, the lowest since December and well below expectations for a 203,000 increase.
It was the first time since November that hiring failed to top the 200,000 level, renewing concerns over the health of the U.S. economy.
The unemployment rate ticked down to 8.2%, the lowest since January 2009, from 8.3% in February. However, the data showed that the decline stemmed entirely from people dropping out of the labor force.
The weaker-than-expected jobs report broke a string of strong employment gains in recent weeks, raising questions about the health of the U.S. economy.
The U.S. was the world’s largest oil consuming country in 2011, responsible for 22% of global oil demand.
Meanwhile, official data released earlier showed that consumer price inflation in China accelerated by 3.6% in March, up from 3.2% in February and above expectations for a 3.3% increase.
The higher-than-expected reading dampened expectations Beijing will introduce fresh monetary easing measures in the near-term to prop up the world’s second largest economy.
Market players have been searching for clues in regards to Chinese growth prospects amid fears the country is headed towards a ‘hard landing’. The Asian nation is set to release government data on the size of its economy on April 13.
China is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
Meanwhile, markets continued to monitor tensions between Iran and the West. Iran and six world powers will meet in Turkey on April 13 and 14 for a round of talks over Tehran's disputed nuclear program.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery fell 0.8% to trade at 121.88 a barrel, with the spread between the Brent and crude contracts standing at USD19.81.