Thursday July 2, 08:57 PM
NYMEX-Crude nearly 4 pct off as jobless ranks swell
NEW YORK, July 2 (Reuters) - U.S. crude oil futures ended
almost 4 percent lower on Thursday as government data showing
that the jobless rate in June rose to the highest level in 26
years sparked fresh worries about a recovery from recession.
The grim economic data prompted oil traders to pare
positions ahead of the July 4 Independence Day weekend holiday
as the latest data stirred worries about oil demand.
'It shows an economy still in distress that can only be
echoed in earnings reports after the holidays,' said Mike
Fitzpatrick, vice president at MF Global in New York.
U.S. employers cut 467,000 jobs in June, while the
unemployment rate rose to 9.5 percent, the highest level since
August 1983, the Labor Department said.
The June job losses were more than 100,000 greater than the
363,000 consensus of Wall Street economists polled by Reuters,
and they broke a four-month trend of moderation in job losses.
But the number of U.S. workers filing new claims for
jobless benefits fell by 16,000 last week, and the number
staying on the rolls after collecting an initial week of aid
also fell, the government said.
The day's slide extended losses suffered on Wednesday after
the government's oil inventory report showed gasoline and
distillate fuel supplies rose sharply last week.
'There was no late short covering ahead of the weekend, so
that could mean we see some more of this rally taken out when
we come back next week,' said Gene McGillian, analyst at
Tradition Energy in Stamford, Connecticut.
NYMEX floor trading will be closed Friday for the U.S.
Independence Day holiday. Electronic trading will not be
affected.
PRICES
* On the New York Mercantile Exchange, August crude
settled down $2.58, or 3.7 percent, at $66.73 a barrel, trading
from $66.50 to $69.74. Tuesday's $73.38 peak was the highest
intraday front-month price since Oct. 21's $75.69.
* For the week, prices are down $2.43, or 3.51 percent,
with front-month crude falling for the third week in a row.
* In London, August Brent crude ended down $2.14,
or 3.11 percent, at $66.65, trading from $66.33 to $69.19.
* NYMEX August RBOB settled down 6.82 cents, or 3.67
percent, at $1.7908 a gallon, trading from $1.7822 to $1.8696.
* NYMEX August heating oil ended down 6.41 cents, or
or 3.63 percent, at $1.7016 a gallon, trading from $1.6947 to
$1.77.
* The August/August RBOB crack spread ended at
$8.48, down from $8.77 on Wednesday. The August/August heating
oil crack spread ended at $4.74, edging down from
$4.85 on Wednesday.
* The spread between the current front month and the
five-year forward crude contract ended at $15.30,
widening from $14.41 on Wednesday. The August 2014 contract
settled at $82.03, down $1.69, or 2.02 percent.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $69.27/$69.94
Technical support/resistance:
NYMEX crude: $66.37/$71.85
NYMEX heating oil: $1.7293/$1.8024
NYMEX RBOB: $1.8154/$1.9026
For a full report on technicals, click on
MARKET NEWS
* The dollar rose against major currencies on the bleak
U.S. jobs data.
* U.S. stocks plummeted as the worse-than-expected slide in
the nonfarm payrolls made investors cautious about economic
recovery prospects.
* OPEC oil exports, excluding Angola and Ecuador, were
forecast to fall 220,000 barrels per day in the four weeks to
July 18, according to a weekly estimate from UK consultancy Oil
Movements.
* China's crude oil stocks were at record high levels at
the end of May, but the gains narrowed compared with past
months, as hefty oil imports were largely consumed because of
refiners' record operational levels.
* London-based oil broker PVM Oil Futures Ltd is
investigating unauthorized trades that left it with losses of
almost $10 million, the company said.
(Reporting by Gene Ramos and Robert Gibbons)
Keywords: MARKETS ENERGY NYMEX
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