Friday, September 3, 2010

Crude Oil Heads for Weekly Decline on Forecast for U.S. Jobless Increase

Crude oil declined, headed for a weekly drop, amid forecasts that a U.S. government report will probably show the jobless rate rose in August for the first time in four months, signaling a recovery in fuel demand may falter. Futures gave up some of yesterday’s 1.5 percent gain as analysts estimated the August payrolls report from the Labor Department may show the U.S. economy lost 105,000 jobs, according to a Bloomberg survey. Crude gained yesterday after an explosion on a Gulf of Mexico oil and gas platform prompted speculation that tighter regulations will cut production.

“Trading is volatile,” said Peter McGuire, managing director at CWA Global Markets Pty in Sydney. “People are still sitting on the sidelines waiting for the unemployment numbers.” The October contract fell as much as 48 cents, or 0.6 percent, to $74.54 a barrel in electronic trading on the New York Mercantile Exchange, and was at $74.69 at 2:53 p.m. Singapore time. Yesterday, it gained $1.11 to $75.02. Futures are 0.6 percent lower this week and down 5.9 percent this year.

“The market will turn to payroll numbers tonight with expectations of a headline fall of 105,000 and a rise in the unemployment rate to 9.6 percent,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in an emailed note today.....Read the entire article.

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