Crude Oil Trades Near a Two Year High as U.S. Employment Figures Beat Forecasts

Crude oil traded near a two year high in New York after employment in the U.S. increased more than forecast, signaling a recovery in fuel demand from the world’s biggest crude consuming nation. Futures pared earlier gains above $87 a barrel as the dollar strengthened against the euro, curbing investor demand for commodities. Payrolls climbed by 151,000 workers in October following a revised 41,000 drop the prior month, the Labor Department said Nov. 5. Prices jumped 6.7 percent last week, the most since February.

“Oil is quite positive, the market has taken heart in the unemployment rate,” said Jonathan Barratt, managing director of Commodity Broking Services Pty in Sydney. “Crude has broken through the topside of the range, so you’ve got to look for higher prices.” Crude for December delivery was at $86.90 a barrel, up 5 cents, in electronic trading on the New York Mercantile Exchange at 12:27 p.m. Singapore time. The contract earlier rose as much as 64 cents, or 0.7 percent, to $87.49, the highest since Oct. 9, 2008. Futures are up 10 percent in 2010.

The increase in U.S. payrolls was the first since May and exceeded all estimates from economists surveyed by Bloomberg News. The U.S. jobless rate held at 9.6 percent, where it’s been since August, according to the Labor Department......Read the entire article.


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