Investing.com – Crude oil futures fell sharply on Friday, trimming a weekly gain after a report showing the U.S. economy added zero jobs in August raised concerns over future demand expectations from the world’s largest oil consumer.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD86.58 a barrel by close of trade on Friday, gaining 1.38% over the week, its second consecutive weekly gain.
The October contract fell as much as 3.6% to trade at USD85.44 a barrel, the lowest price since August 29.
The U.S. Department of Labor said Friday that non-farm payrolls were unchanged last month, the weakest reading since September 2010. Economists had expected non-farm payrolls to rise by 74,000 in August.
July’s figure was revised down to an increase of 85,000 from a previously reported 117,000. The unemployment rate remained unchanged at 9.1% in August.
The dismal jobs report saw the U.S. dollar strengthen against its major counterparts. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.35% to 74.85 on Friday, the highest since August 12.
Dollar-denominated oil futures contracts tend to fall when the dollar gains, as this makes oil more expensive for buyers in other currencies.
Crude prices found support as investors monitored the progress of Tropical Storm Lee and its impact on oil production in the Gulf of Mexico after the U.S. National Hurricane Center forecast the storm to make landfall along the Louisiana Coast on Sunday.
The U.S. Bureau of Ocean Energy Management said Friday that nearly 5.7% of oil production in the Gulf has been shut as companies such as British Petroleum and Exxon evacuated personnel from platforms in the region.
Crude futures rose to a two-week high of USD89.88 a barrel on Thursday amid fears over a disruption to supplies and after the U.S. Institute for Supply Management said that its index of purchasing managers fell less-than-expected in August.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery traded at USD112.58 a barrel by close of trade on Friday.
The Brent contract advanced 1.4% over the week, with the spread between the two contracts widening to USD26.00 a barrel, re-approaching the record high of USD26.42 it hit on August 19.
NYMEX floor trading will be closed on Monday for the U.S. Labor Day holiday.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD86.58 a barrel by close of trade on Friday, gaining 1.38% over the week, its second consecutive weekly gain.
The October contract fell as much as 3.6% to trade at USD85.44 a barrel, the lowest price since August 29.
The U.S. Department of Labor said Friday that non-farm payrolls were unchanged last month, the weakest reading since September 2010. Economists had expected non-farm payrolls to rise by 74,000 in August.
July’s figure was revised down to an increase of 85,000 from a previously reported 117,000. The unemployment rate remained unchanged at 9.1% in August.
The dismal jobs report saw the U.S. dollar strengthen against its major counterparts. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.35% to 74.85 on Friday, the highest since August 12.
Dollar-denominated oil futures contracts tend to fall when the dollar gains, as this makes oil more expensive for buyers in other currencies.
Crude prices found support as investors monitored the progress of Tropical Storm Lee and its impact on oil production in the Gulf of Mexico after the U.S. National Hurricane Center forecast the storm to make landfall along the Louisiana Coast on Sunday.
The U.S. Bureau of Ocean Energy Management said Friday that nearly 5.7% of oil production in the Gulf has been shut as companies such as British Petroleum and Exxon evacuated personnel from platforms in the region.
Crude futures rose to a two-week high of USD89.88 a barrel on Thursday amid fears over a disruption to supplies and after the U.S. Institute for Supply Management said that its index of purchasing managers fell less-than-expected in August.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery traded at USD112.58 a barrel by close of trade on Friday.
The Brent contract advanced 1.4% over the week, with the spread between the two contracts widening to USD26.00 a barrel, re-approaching the record high of USD26.42 it hit on August 19.
NYMEX floor trading will be closed on Monday for the U.S. Labor Day holiday.