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Crude drops on dreary U.S. jobs report

Published 06/01/2012, 01:51 PM
Updated 06/01/2012, 01:53 PM
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Investing.com - Crude oil futures fell to a near eight-month low on Friday after the U.S. Bureau of Labor Statistics reported that the U.S. economy added a net 69,000 nonfarm payrolls in May, far below expectations for a gain of 150,000.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at USD83.30 a barrel in U.S. trading Friday, down 3.74%, off from a session high of USD86.59 and up from an earlier session low of USD82.58.

Weak jobs numbers fueled sentiment that the broader economy will remain tepid and need less fuels to grow.

U.S. unemployment figures weren't the only winds moving the market's weather vane.

Ongoing fears that the European debt crisis will continue escalating also pushed the commodity down.

Fears continued that June 17 elections in Greece could thrust enough politicians into power who favor abandoning austerity measures attached to bailout payments, which could open the door to a Greek exit from the currency zone.

Spain has found itself under increasing duress and may issue debt to prop up its banking sector and help regional governments finance their debts.

Manufacturing data has repeatedly missed expectations out of Europe as well as in China, fueling fears the global economy may be hitting a soft patch, which was bullish for oil.

On the ICE Futures Exchange, Brent oil futures for July delivery were down 3.36% and trading at USD98.44 a barrel, up USD15.14 from its U.S. counterpart.






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