Investing.com – Crude oil futures were down sharply on Monday, tumbling to a fresh six-day low as deepening concerns over global growth prospects weighed on future oil-demand expectations.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD84.11 a barrel during U.S. morning trade, plunging 2.71%.
It earlier fell as much as 2.85% to trade at USD84.03 a barrel, the lowest price since August 26.
Concerns that the global economic recovery is losing momentum were underlined on Friday, after a government report showed that the U.S. economy added zero jobs in August, the weakest reading since September 2010. Economists had expected non-farm payrolls to rise by 74,000 last month.
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.
Market sentiment remained downbeat after German Chancellor Angela Merkel's ruling party was defeated in local elections on Sunday, exacerbating fears over the region’s ongoing sovereign debt crisis.
The dire global outlook saw risk aversion sharpen, boosting the greenback. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.75% to hit 75.38, after rising earlier to 75.41, the highest since August 5.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.
Elsewhere, Tropical Storm Lee weakened to a depression after making landfall along the Louisiana coast on Sunday, away from the oil-rich Gulf of Mexico region.
Oil majors British Petroleum and Exxon said workers were returning to oil facilities in the western Gulf, after being evacuated before the weekend. Royal Dutch Shell also confirmed that it began returning staff after evacuating as many as 858 workers.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery tumbled 1.94% to trade at USD110.39 a barrel. The spread between the two contracts widened to USD26.28 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. Electronic trades were to be booked with Tuesday’s transactions for settlement purposes.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD84.11 a barrel during U.S. morning trade, plunging 2.71%.
It earlier fell as much as 2.85% to trade at USD84.03 a barrel, the lowest price since August 26.
Concerns that the global economic recovery is losing momentum were underlined on Friday, after a government report showed that the U.S. economy added zero jobs in August, the weakest reading since September 2010. Economists had expected non-farm payrolls to rise by 74,000 last month.
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.
Market sentiment remained downbeat after German Chancellor Angela Merkel's ruling party was defeated in local elections on Sunday, exacerbating fears over the region’s ongoing sovereign debt crisis.
The dire global outlook saw risk aversion sharpen, boosting the greenback. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.75% to hit 75.38, after rising earlier to 75.41, the highest since August 5.
Oil prices typically weaken when the U.S. currency strengthens as the dollar-priced commodity becomes more expensive for holders of other currencies.
Elsewhere, Tropical Storm Lee weakened to a depression after making landfall along the Louisiana coast on Sunday, away from the oil-rich Gulf of Mexico region.
Oil majors British Petroleum and Exxon said workers were returning to oil facilities in the western Gulf, after being evacuated before the weekend. Royal Dutch Shell also confirmed that it began returning staff after evacuating as many as 858 workers.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for October delivery tumbled 1.94% to trade at USD110.39 a barrel. The spread between the two contracts widened to USD26.28 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. Electronic trades were to be booked with Tuesday’s transactions for settlement purposes.