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Oil up slightly ahead of U.S. jobs data

Published 07/04/2013, 08:29 PM
NWSA
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Investing.com - Oil futures traded modestly higher in the early part of Friday’s Asian session as traders await the June non-farm payroll report from the U.S. Labor Department later Friday.

On the New York Mercantile Exchange, light, sweet crude futures for August delivery inched up 0.02% to USD101.26 per barrel in Asian trading Friday. Volume was light during electronic trade Thursday because U.S. markets were closed in observance of the Independence Day holiday.

Even with the light volume, oil traders closely monitored the situation in Egypt, North Africa’s largest economy.

Egypt swore in Adly Mansour as interim leader earlier in the day after former President Mohammed Morsi was ousted from power on Wednesday in what various media outlets reported as a military coup.

In U.S. economic news out Wednesday, weekly jobless claims fell 5,000 to a seasonally adjusted 343,000 last week. The less volatile four-week moving average dropped by 750 to 345,500, according to the U.S. Labor Department.

Payroll provider ADP said private employers added 188,000 new jobs last month. Heavy gains were seen in construction and small-business.

Those reports could provide import clues for what to expect from the June jobs report. A surprisingly strong report could open the door for the Federal Reserve to begin tapering its USD85 billion-a-month easing program, which could weigh on crude.

Dollar-denominated oil futures contracts tend to weaken when the dollar gains, as this makes oil more expensive for buyers in other currencies.

Then again, the U.S. is the world’s largest oil consumer and improving economy there could be seen as a sign of robust oil demand.

Elsewhere, Brent for August delivery rose 0.06% to USD105.58 per barrel on the ICE Futures Exchange.


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