Investing.com - Crude oil futures plunged on Monday, trading just above an eight-week low as Friday’s weaker-than-expected U.S. jobs data weighed heavily ahead of the resumption of international talks over Iran’s nuclear program later in the week.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD101.45 a barrel during U.S. morning trade, tumbling 1.8%.
It earlier fell by as much as 2.1% to trade at a session low of USD101.27 a barrel. Oil futures fell to USD101.07 a barrel on April 4, the lowest since February 15.
NYMEX electronic and floor trading was closed on Friday in observance of Good Friday. Trading volumes remained light as markets in London and the euro zone remained closed due to the Easter holiday.
Disappointment from Friday’s dismal payrolls report carried over to Monday’s session, weighing heavily on global equities and industrial commodities, such as oil and copper.
The U.S. Department of Labor said Friday 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.
Oil was also under pressure ahead of talks scheduled to take place later this week between Iran and six world powers in Turkey on April 13 and 14 surrounding Tehran's disputed nuclear program.
The six world powers include, the U.S., the U.K., France, Germany, Russia and China.
The stand-off between Iran and Western countries has dominated sentiment in the oil market in recent months, pushing up prices from USD75 a barrel in October to as high as USD110 in early March.
Iran produces about 3.5 million barrels of oil a day, making it the second-largest oil producer in the Organization of Petroleum Exporting Countries after Saudi Arabia.
Adding to the gloomy market environment, official data released earlier in the day 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.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery fell 1.4% to trade at 121.11 a barrel, with the spread between the Brent and crude contracts standing at USD19.66 a barrel.
On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD101.45 a barrel during U.S. morning trade, tumbling 1.8%.
It earlier fell by as much as 2.1% to trade at a session low of USD101.27 a barrel. Oil futures fell to USD101.07 a barrel on April 4, the lowest since February 15.
NYMEX electronic and floor trading was closed on Friday in observance of Good Friday. Trading volumes remained light as markets in London and the euro zone remained closed due to the Easter holiday.
Disappointment from Friday’s dismal payrolls report carried over to Monday’s session, weighing heavily on global equities and industrial commodities, such as oil and copper.
The U.S. Department of Labor said Friday 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.
Oil was also under pressure ahead of talks scheduled to take place later this week between Iran and six world powers in Turkey on April 13 and 14 surrounding Tehran's disputed nuclear program.
The six world powers include, the U.S., the U.K., France, Germany, Russia and China.
The stand-off between Iran and Western countries has dominated sentiment in the oil market in recent months, pushing up prices from USD75 a barrel in October to as high as USD110 in early March.
Iran produces about 3.5 million barrels of oil a day, making it the second-largest oil producer in the Organization of Petroleum Exporting Countries after Saudi Arabia.
Adding to the gloomy market environment, official data released earlier in the day 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.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for May delivery fell 1.4% to trade at 121.11 a barrel, with the spread between the Brent and crude contracts standing at USD19.66 a barrel.