Investing.com - Crude oil futures declined in Asian trade Tuesday, as investors reacted negatively to U.S. figures indicating a stagnant labor market and diminished prospects for demand from the world’s largest oil consumer.
On the New York Mercantile Exchange light, sweet crude futures for October delivery traded at USD83.47 a barrel during early Asian trade, falling 0.19%, after hitting a daily high of USD83.94.
The U.S. Labor Department, late last week, reported that non-farm payrolls were unchanged in August, the weakest job reading in a year. Market expectations were for non-farm payrolls to increase by 74,000 in August, after a revised 85,000 gain in July.
Stagnant job growth raised further speculation that the U.S. Federal Reserve Bank may be preparing for a new round of asset buying, or quantitative easing.
Elsewhere, Tropical Storm Lee weakened to a tropical depression after making landfall on the Louisiana coast Sunday, moving away U.S. oil production facilities in the Gulf of Mexico.
British Petroleum and Exxon reported their workers were returning to oil facilities in the western Gulf, after being evacuated before the arrival of Lee. Royal Dutch Shell also confirmed it had begun returning staff after evacuating more than 800 workers.
A strengthening U.S. dollar helped to depress enthusiasm for oil futures, as dollar-denominated futures contracts tend to fall when the dollar rises.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.24% to 75.38.
On the ICE Futures Exchange Brent oil futures for October delivery gained 0.42% to trade at USD110.42.
NYMEX floor trading was closed Monday for the U.S. Labor Day holiday. Electronic trades were to be booked with Tuesday’s transactions for settlement purposes.