Crude oil fell after U.S. payrolls unexpectedly declined last month, spurring concern that the economy and fuel demand will be slow to recover. Oil slipped as much as 1 percent after the Labor Department reported that the world’s biggest energy-consuming country lost 85,000 jobs in December. Futures climbed to a 14-month high this week as temperatures dropped in the Northern Hemisphere, U.S. crude-oil supplies rose and the dollar weakened, bolstering the appeal of commodities to investors. “These numbers increase skepticism about the recovery,” said Michael Fitzpatrick, vice president of energy with MF Global in New York. “There’s no rational reason for prices to be at these levels. We’ll probably soon see a good-sized setback in prices.”
Crude oil for February delivery fell 50 cents, or 0.6 percent, to $82.16 a barrel at 9:44 a.m. on the New York Mercantile Exchange. Futures are up 3.5 percent this week after touching $83.52 on Jan. 6, the highest level since Oct. 14, 2008. Payrolls were forecast to be unchanged, according to the median estimate of 76 economists surveyed by Bloomberg News. “Today’s unemployment number underscores that any recovery in payrolls will be slow,” said Rick Mueller, director of oil markets at Energy Security Analysis Inc. in Wakefield, Massachusetts. “The recent rally was, in part, built on a much rosier outlook for the economy than these numbers paint. This will probably cool things off”.....Read the entire article.
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