Thursday, August 5, 2010
Crude Oil Falls After U.S. Jobless Claims Climb to Three Month High
“The economic data doesn’t bode well for oil demand,” said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. “It’s hard to justify oil near $82 a barrel with the economy struggling.” Crude oil for September delivery declined 46 cents, or 0.6 percent, to settle at $82.01 a barrel on the New York Mercantile Exchange. Futures are up 14 percent from a year ago. Brent crude oil for September settlement fell 59 cents, or 0.7 percent, to end the session at $81.61 a barrel on the London-based ICE Futures Europe exchange.
Economists forecast claims would fall to 455,000, according to the median of 43 projections. Estimates ranged from 444,000 to 470,000. The government revised the prior week’s total to 460,000 from a previously reported 457,000. The country’s jobless rate rose to 9.6 percent last month from 9.5 percent in June, according to a Bloomberg survey before a Labor Department report tomorrow. “We turned lower once the jobs report was released,” said Tom Bentz, a broker at BNP Paribas Commodity Futures Inc. in New York. “There hasn’t been a lot of momentum. We just appear to be giving back some of our recent gains”.....Read the entire article.
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