Sunday 17 December 2017

Crude oil declines ahead of US job figures

Oil declined as European equities opened lower before a report that may show rising unemployment in the US, while the dollar recovered some of its losses against the euro.

Futures are headed for their first weekly decline in three weeks after falling 1.9pc yesterday, the biggest daily decline since September 16.

A government report today may show the US jobless rate rose to 9.7pc from 9.6pc in August, according to the median estimate of 83 economists surveyed by Bloomberg News.

“If the jobs figure were to be negative, that might have some impact on oil, pushing it lower,” said Gavin Wendt at Mine Life, a director at commodity analysts Mine Life Resources Ltd in Sydney.

Crude for November delivery fell 25 cents, or 0.3pc, to $81.42 a barrel in electronic trading on the New York Mercantile Exchange as of 8:25pm.

Brent crude for November settlement was at $83.25 a barrel, down 18 cents, on the ICE Futures Europe exchange in London.

The dollar was at $1.3933 against the euro after slipping to $1.3962. The US currency slumped yesterday to $1.4029, the weakest since January 28.

Investors tend to buy commodities when the dollar falls. The Stoxx Europe 600 Index fell was down 0.4pc at 261.19 at 8:29am.


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