Investing.com – Crude oil futures extended sharp losses from the previous session on Monday, dropping to a six-day low amid mounting concerns that the U.S. economy is sliding back into a recession.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in October traded at USD85.22 a barrel during European morning trade, tumbling 1.43%.
It earlier fell as much as 1.9% to trade at USD84.83 a barrel, the lowest price since August 26.
U.S. government data on Friday showed that world’s largest oil consumer added zero jobs in August, the weakest reading since September 2010. Economists had expected non-farm payrolls to rise by 74,000 in August. The unemployment rate remained unchanged at 9.1%.
The dismal jobs data prompted investors to shun riskier assets, such as stocks and high yielding currencies and flock to traditional safe haven assets like the greenback.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.35% to 75.09, after rising earlier to 75.16, the highest since August 11.
Dollar-denominated oil futures contracts tend to fall when the dollar gains, as this makes oil more expensive for buyers in 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 fell 1.05% to trade at USD111.39 a barrel.
The spread between the two contracts widened to USD26.17 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 USD85.22 a barrel during European morning trade, tumbling 1.43%.
It earlier fell as much as 1.9% to trade at USD84.83 a barrel, the lowest price since August 26.
U.S. government data on Friday showed that world’s largest oil consumer added zero jobs in August, the weakest reading since September 2010. Economists had expected non-farm payrolls to rise by 74,000 in August. The unemployment rate remained unchanged at 9.1%.
The dismal jobs data prompted investors to shun riskier assets, such as stocks and high yielding currencies and flock to traditional safe haven assets like the greenback.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.35% to 75.09, after rising earlier to 75.16, the highest since August 11.
Dollar-denominated oil futures contracts tend to fall when the dollar gains, as this makes oil more expensive for buyers in 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 fell 1.05% to trade at USD111.39 a barrel.
The spread between the two contracts widened to USD26.17 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.