Nov-07-2009Demand Worries Drag Crude Oil Down More Than $2
(topic overview)
CONTENTS:- PERTH, Nov 6 (Reuters) - Oil rose slightly on Friday, supported by positive U.S. economic data, but wariness ahead of monthly jobs data from the United States limited gains and kept its price below the psychologically key $80 level. (More...)
- Last year's third quarter was one of the best for oil companies as crude contracts soared above $147 a barrel. (More...)
- U.S. crude for December delivery was down $1.86 to $77.86 a barrel by 1420 GMT, retracing early gains as high as $80.34 in the trading session. (More...)
- Brent crude on the ICE futures exchange traded $2.02, or 2.6%, lower at $75.97 a barrel. (More...)
- Crude has crisscrossed the $80 level for the last few weeks as investors mull weak U.S. consumer demand and a volatile dollar. (More...)
- The U.S. Federal Reserve on Wednesday held rock-bottom interest rates for 'an extended period' and kept trillion-dollar stimulus measures in place to support a fragile recovery from recession. (More...)
- You can lock in your price of fuel with a strategic investment in U.S. Oil Fund ( USO ]] USO ), or U.S. Gasoline ( UGA ). (More...)
- Analysts polled by Reuters had predicted a cut of 175,000 jobs, the smallest number for 14 months, and a rise in the overall jobless rate to 9.9 percent. (More...)
- With nearly 16 million people now out of work, traders found few reasons to expect it will return anytime soon. (More...)
- When the U.S. gets back on track, and the emerging markets return to firing on all 12 cylinders, triple digit oil is a gimme, and new highs will easily be attainable. (More...)
- Prices fell as low as $79.34, compared to a daily high of $80.62. (More...)
SOURCESFIND OUT MORE ON THIS SUBJECTPERTH, Nov 6 (Reuters) - Oil rose slightly on Friday, supported by positive U.S. economic data, but wariness ahead of monthly jobs data from the United States limited gains and kept its price below the psychologically key $80 level. Despite data showing jobless claims in the U.S. fell to a 10-month low last week and non-farm productivity rose at its fastest pace in six years in the third-quarter, oil prices fell nearly 1 percent on Thursday as high fuel inventories in the United States raised worries about a recovery in oil demand.
[1] NEW YORK (Reuters) - Oil prices fell nearly 3 percent to $77 a barrel on Friday after data showed the U.S. jobless rate jumped to a 26-1/2-year high in October, raising concerns about a potential rebound in fuel demand.
[2] NEW YORK (AP) - Chevron said it pumped its way through a weak third quarter, producing more oil as prices recovered from a severe plunge earlier in the year. The second-largest U.S. oil and gas producer boosted revenues by increasing oil production by 11 percent. Its average sale price for crude and natural gas liquids over the past three months was $62 per barrel which is better than the previous quarter, but well below the $103 it fetched during the same period last year.
[3] The chart below show our inventory levels compared to one-year ago, we are entering the top of the range, which is bullish. This next chart is the supply of crude oil stated in the days of usage, which is bearish. The present inventory levels in the U.S. do not support $80 per barrel oil, but this price is set in an open market. Every day bidders and sellers factor world inventories, economic recovery, currency exchange rates, terrorism and personal biases into their actions.
[4] For most of the year, oil prices shrugged off growing unemployment and steadily climbed above $80 a barrel as investors bet that American energy demand would return with an economic recovery.
[5] Oil prices lost over $2 to stumble below $78 a barrel Friday as rising U.S. unemployment figures renewed concerns about the economic recovery and consumer demand.
[6] NEW YORK - Oil prices tumbled Friday as official data showed unemployment hitting a fresh 26-year high in the United States, raising fresh doubts about the economic recovery and energy demand.
[7] NEW YORK (Dow Jones)--Crude-oil futures dropped to a one-week low Friday after the U.S. unemployment rate rose to a 26-year high, unsettling previous hopes that the fledgling economic recovery would boost flagging oil demand.
[8] NEW YORK, Nov 6 (Reuters) - U.S. crude futures finished nearly 3 percent lower on Friday, after government data showing the unemployment rate at its highest in 26-1/2 years sparked more worries about petroleum demand.
[9] NEW YORK, Nov 6 (Reuters) - U.S. crude futures fell on Friday after the Labor Department reported U.S. employers cut more jobs than expected in October, raising the unemployment rate to its highest level since April 1983.
[10] London Brent crude fell $1.70 to $76.29. Government figures released at 1330 GMT showed U.S. employers cut a deeper-than-expected 190,000 jobs in October, sending the unemployment rate to 10.2 percent, its highest since April, 1983.
[11] "Crude and products futures pulled back sharply after the release of the October U.S. unemployment report, which showed the unemployment rate climbed to 10.2 percent," Addison Armstrong, analyst at Tradition Energy in Stamford, Connecticut, said in a research note.
[10] Nov. 5 -- Crude oil fell on speculation that a government report tomorrow will show that the U.S. unemployment rate climbed last month, depressing demand for energy products.
[12] Crude oil prices came under pressure on Thursday as prices faced resistance above $80/bbl. Oil prices touched a high of $81.06/bbl this week as a decline in inventories coupled with optimism that fuel demand will increase helped support upside. The U.S. Energy Department weekly inventory report showed this week that oil inventories declined, thereby giving hopes of a rebound in demand.
[13] The Department Energy chart below of U.S. oil consumption per unit of output shows that, in fact, we are at a 40 year low in the price of crude. It takes half as much oil to produce a unit of GDP than it did in the late sixties, when 12 miles per gallon was considered reasonable, and only Lincoln Continentals got abused because they consumed a gluttonous six miles per gallon. This is the why current lofty prices are having a negligeable effect on a reviving economy.
[4] "Should unemployment turn out to increase substantially above expectations of the IMF of 10.15 percent in 2010, U.S. gasoline demand is likely to erode further," Vienna's JBC Energy said. Crude investors are also watching signs in recent weeks of a drop in U.S. oil supplies, which increased sharply this year as demand shrank.
[14] JBC Energy, an analyst firm in Vienna, said that if the unemployment rate rises "substantially above. 10.15 percent in 2010, U.S. gasoline demand is likely to erode further."
[6] NEW YORK — Oil prices tumbled Friday after the government said the U.S. unemployment rate topped 10 percent for the first time since 1983.
[5] NEW YORK, Nov. 6 (Xinhua) -- Crude prices ended more than two dollars lower on Friday as U.S. unemployment rate hit double digits, the highest since 1983.
[15] NEW YORK (Dow Jones)--Crude futures sank Friday as U.S. unemployment hit a 26-year high, raising the prospect that oil demand would take longer to recover than many had expected.
[16] U.S. crude oil futures ended lower on Thursday, snapping a three-day rally, on worries about weak oil demand as the economic outlook remained cautious despite a decline in new claims for jobless benefits.
[17] NEW DELHI: Crude palm oil futures prices rose by 1.29 per cent on Friday as speculators indulged in creating fresh positions on expectations of rise in demand in spot market in view of the ongoing marriage season.
[18] On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $80.05 a barrel at 0615 GMT, up 43 cents in the Globex electronic session.
[19] By midday in Europe, benchmark crude for December delivery was up 23 cents to $79.85 a barrel in electronic trading on the New York Mercantile Exchange.
[14] On the New York Mercantile Exchange, crude for December delivery CLZ9 settled down $2.19, or 2.75 percent, at $77.43 a barrel, after trading from $76.71 to $80.34.
[9] Light, sweet crude for December delivery fell 2.19 dollars, or 2.8 percent, to settle at 77.43 dollars a barrel on the New York Mercantile Exchange.
[15] Light, sweet crude for December delivery settled $2.19, or 2.8%, lower at $77.43 a barrel on the New York Mercantile Exchange. This was the lowest settlement since October 30.
[8] Benchmark crude for December delivery gave up 78 cents to settle at $79.62 a barrel on the New York Mercantile Exchange.
[20] New York's main contract, light sweet crude for delivery in December rose 36 cents to $80.01 a barrel.
[21] New York's main contract, light sweet crude for delivery in December dropped 2.12 dollars to close at 75.87 dollars a barrel, a drop of 2.75 percent drop that wiped out gains from earlier in the week.
[7] 
Last year's third quarter was one of the best for oil companies as crude contracts soared above $147 a barrel. Chevron followed its peers including Exxon Mobil with results that appeared especially weak when compared with the go-go oil market from last summer. The company said the weakness in the U.S. dollar this year made it more expensive to operate overseas, resulting in foreign exchange charges of $81 million for the quarter.
[3] The weak U.S. dollar also pushed oil higher since crude contracts are priced in dollars, and a drop in U.S. currency gives investors with foreign money more buying power. Oil hasn't been able to push past $82 a barrel as U.S. oil consumption dropped well below average for this time of year.
[5] Francisco Blanch, head of global commodities research with Bank of America-Merill Lynch, believes that crude prices will continue to march to $100 a barrel by 2011. The weak dollar will continue to boost oil prices next year, he said, though it's hard to tell how much more the market will bear.
[5] Oil prices climbed toward $80 a barrel Friday, catching up with a surge in global stock markets and assisted by a slightly weaker dollar which made crude more attractive to international investors.
[14] In early trade market participants sent oil back up to around $80 a barrel in anticipation of bullish data, but the bearish figures crossed a psychological threshold of 10 percent for markets. "It's the old cliche, but the 10 percent number really was a key line in the sand." Oil prices have risen from a low of less than $33 a barrel last December to a high for this year of $82 in October. They were on course to gain nearly 4 percent this week, but market sentiment had been cautious following inventory data earlier in the week showing oil stocks at record supply levels.
[11] LONDON: Oil prices climbed above $80 a barrel on Friday as traders looked ahead to employment data in the United States, the world's biggest energy consuming nation.
[21] Saturday, November 07, 2009 LONDON: Oil prices fell Friday as official data showed unemployment rising in the United States, the world's biggest energy consuming nation, traders said.
[22] LONDON, Nov 6 (Reuters) - Oil prices fell by more than 2 percent on Friday after larger-than-expected October U.S. unemployment numbers emerged to shake financial markets.
[11] Andy Lipow at Lipow Oil Associates said the unemployment report delivered a major blow to oil prices. "With higher unemployment it's going to impact demand more significantly than the market had anticipated," he said. "Not only are a higher amount of people out of work, the people who are employed are going to be concerned about their future job prospects and will hold back on spending over the next couple of months."
[7] Big oil raked in gigantic profits, setting new records each quarter, while mega-billions flowed into OPEC coffers. In the year-plus of the world trying to stave off a global depression and collapse of the financial system, with millions of people jobless (or worried that they might be) and thousands of businesses going belly-up (including a number of ethanol operations), demand for oil nosedived, supplies mushroomed to the point that companies were paying $75,000 per day to store oil in supertanker ships idled offshore, and speculators having reaped enormous profits and helped drive oil prices to stratospheric levels, took their gains and moved to other markets.
[23] Gasoline prices have been lower over the past several months, hovering mostly around the $2 level, down about half from the peak of $4 or so. The relief was not without its own terrible cost ' U.S. and world economies in freefall, brought on primarily by a banking/finance sector playing fast and loose with the rules of sound fiscal policy, but also by oil prices north of $140 per barrel that were sucking the life out of businesses and making it ever harder for families to make ends meet.
[23] At the pump, retail gasoline prices slid throughout the week, giving up less than a penny overnight to a new national average of $2.679 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service.
[5] Crude Oil prices hovered around $80/bbl as a weaker dollar supported the upside.
[24] Crude oil price is likely to increase in price with the improving world economy, faster than justified by the U.S. economy.
[4] Some analysts forecast higher oil prices next year as the economy strengthens and demand recovers.
[14] While oil has been transformed during the past 30 years into a vibrantly traded global commodity, natural gas trading remains fragmented, with prices in all regions but the U.S. mirroring the oil price. That is all about to change, says the International Energy Agency.
[25] A better and more sustainable trend tends to evolve out of a rising equity/commodity ratio but in order for that to happen the combination of the price of long-term Treasuries and the U.S. Dollar Index has to push upwards. As it has moved lower this year down the trading channel the equity/commodity ratio has held below the highs set last December.
[12] At top right is a comparison between the ratio of equities to commodities and the sum of the price of the U.S. 30-year T-Bond futures and U.S. Dollar Index. The argument is that even though the equity markets have been nicely higher this year the improvement has largely been as a result of stronger commodity prices.
[12] Losses deepened from Thursday, when oil futures fell in a delayed reaction to midweek's government inventory data showing U.S. total oil product demand over the past four weeks was down 4.5 percent from a year ago.
[9] U.S. total oil product demand over the past four weeks was down 4.5 percent from a year ago, according to Wednesday's report from the U.S. Energy Information Administration.
[10] The U.S. Labor Department said the economy lost 190,000 jobs in October, while the unemployment rate jumped to 10.2 percent from 9.8 percent in September. It was the first time it surpassed 10 percent since 1983 and the 22nd straight month the U.S. economy has shed jobs, the longest stretch on records dating back 70 years.
[6] The U.S. unemployment rate jumped to 10.2 percent in October as 190,000 jobs were shed, the government said Friday in data highlighting ongoing struggles of an economy emerging from recession.
[7] "The 10.2 percent unemployment rate is somewhat startling, the worst in 26-1/2 years," said Mike Fitzpatrick at MF Global. "Naturally, this data will not provide much intellectual substance to an argument that concludes the economy is recovering, as the recent (growth) data suggests; nor for that matter, for energy demand growth," he added. "What is distressing is the amount of stimulus expended so far, and the spending yet to come with such clearly minimal benefit.
[7] Non-farm payrolls data due out Friday are expected to show the U.S. unemployment rate rose to 9.9 percent in October, from a 26-year high of 9.8 percent in September.
[21] The U.S. is expected to announce data on unemployment rate today and it is expected to come on the weak side. This negative data could again raise concern over the progress of the economic recovery.
[24] The U.S. is expected to announce economic data on unemployment rate, non-farm employment change and average hourly earnings today.
[24] Markets await the economic data on unemployment rate which is expected today at 7.00 p.m. IST. Prices could come under pressure today and face resistance around $80/bbl as poor unemployment rate data could reduce risk appetite and lead to selling pressure.
[24] 'Once again, the demand side of the. numbers (published Wednesday) was extremely weak,' said a senior commodity analyst with MF Global Edward Meir. Analyst at Prestige Economics Jason Schenker said it was 'a surprising report. but doesn't fundamentally change the picture of very large crude inventories and near historically high distillates inventories.' He said the weekly data had caught a number of traders 'off guard,' sending prices briefly above $81.
[21] Energy markets have been watching economic data for signs of recovery from the recession that slammed fuel consumption, helping to lift crude prices from below $33 a barrel in December 2008.
[2] Whether crude oil futures prices declined in front of today's employment report or behind the reality of Wednesday's energy inventory data is open to debate.
[12] Below we compare the sum of copper and crude oil futures with the spread or price difference between the biotech holdrs and Potash.
[12] U.S. crude oil futures ended up on Wednesday, though well below the day's highs, buoyed by an optimistic economic outlook from the Federal Reserve and a surprise weekly drawdown in crude inventories.
[26] At bottom right is a comparison between the U.S. 10-year T-Note futures and the ratio of the S&P 500 Index to crude oil futures.
[12] Brent crude on the ICE futures exchange closed $2.12, or 2.7% lower, at $75.87 a barrel. U.S. unemployment climbed to its.
[8] December Brent crude on London's ICE Futures exchange rose 60 cents to $78.59 a barrel.
[19] In London, Brent crude for December delivery rose 37 cents to $78.36 on the ICE Futures exchange. Associated Press writer Alex Kennedy in Singapore contributed to this report.
[14] In London, Brent crude for December delivery shed $2.02 to $75.97 on the ICE Futures exchange. Associated Press writers Alex Kennedy in Singapore and Christopher S. Rugaber in Washington contributed to this report.
[6] In London, Brent Crude for December delivery fell 2.12 dollars to settle at 75.87 dollars a barrel on the ICE Futures exchange.
[15] In London, Brent crude for December delivery fell 90 cents to settle at $77.99. Economists, including those at Cambridge Energy Research Associates, have predicted world energy demand will continue to slide as automakers build cars with better mileage and countries embrace alternative fuels.
[20] In London, December Brent crude LCOZ9 fell 91 cents, or 1.17 percent, to $77.08 a barrel, trading from $75.68 to $78.81.
[10] In London, December Brent crude LCOZ9 ended down $2.12, or 2.72 percent, at $75.87 a gallon, trading from $75.25 to $78.81.
[9] NYMEX December heating oil HOZ9 fell 2.90 cents, or 1.41 percent, to $2.0286 a gallon, trading from $1.9933 to $2.0739.
[10] NYMEX December RBOB RBZ9 ended down 6.34 cents, or 3.19 percent, at $1.9243 a gallon, trading from $1.9026 to $2.0005.
[9] U.S. crude for December delivery was down $1.86 to $77.86 a barrel by 1420 GMT, retracing early gains as high as $80.34 in the trading session. [11] U.S. crude for December delivery crept up 12 cents to $79.74 a barrel by 0025 GMT, after shedding 78 cents to settle at $79.62 on Thursday.
[1] Light sweet crude oil for December delivery finished at $79.62 per barrel, down 78 cents on the session.
[27] Brent North Sea crude for December delivery gained 45 cents to $78.44 in London trade.
[21] Brent North Sea crude for December delivery shed 2.12 to settle at 75.87 dollars in London trade.
[7] Brent crude on the ICE futures exchange traded $2.02, or 2.6%, lower at $75.97 a barrel. [16] Firming trend in overseas markets also influenced the crude palm oil prices at futures market.
[18] Since fundamentals in the case of crude oil are subdued, oil prices could face pressure on the downside.
[24] In general a strong commodity price trend that pushes copper and crude oil prices upwards will tend to go with relative weakness in the biotechs.
[12] Uncertain appetite for oil cuts price Boston Globe NEW YORK - Oil prices slipped yesterday as investors questioned whether the country would regain its appetite for petroleum.
[20] "Surplus stocks, soft demand, rising OPEC production and an ongoing projected supply/demand surplus all point to the potential for a substantial downward price correction from current levels, in our view," said Tim Evans, energy analyst at Citi Futures Perspective in New York.
[9] The euro bought $1.4877 in European morning trading, up slightly from $1.4868 late Thursday in New York, while the British pound also rose to $1.6610 from $1.6586 and the dollar fell against the Japanese yen, buying 90.46 against 90.78 yen Thursday.
[14] The oil markets ignored signals from Wall Street, which, despite the jobless report, remained up slightly in late trading, helped by several broker upgrades that offset the disappointing rise in the unemployment rose to 10.2 percent, the highest since April 1983.
[9] "The oil complex wasted no time in drawing a straight line in connecting the dots between the higher 10.2 percent unemployment rate and continued weak petroleum consumption," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.
[9] The Labor Department reported the unemployment rate jumped to 10.2 percent in October from an unrevised 9.8 percent in September.
[28] The Labor Department said employers cut 190,000 jobs in October, more than the 175,000 that markets had expected, bringing unemployment to 10.2 percent.
[2] U.S. employers cut 190,000 jobs in October, the Labor Department said, more than the 175,000 markets had expected, but fewer than the 219,000 lost in September.
[9] The U.S. Labor Department said Friday that the October jobless rate jumped to a 26-year high of 10.2 percent from 9.8 percent in September, showing the economy was still quite weak even though it was recovering.
[15] The Labor Department report, seen as one of the best indicators of economic momentum, showed a rise in the jobless rate, up from 9.8 percent in September, to the highest since 1983.
[7] The Labor Department report showed that jobless claims fell to 512,000 from the previous week's revised figure of 532,000.
[27] The major U.S. index futures are pointing to a lower opening on Friday, with futures turning lower following the release of the jobs report for October, which showed a spike in the jobless rate above the 10% level to a 26-year high.
[27] The dollar rose against the euro and a basket of major currencies as the jobs report lifted safe-haven demand for the greenback. U.S. oil producers and refiners said operations were normal in and around the Gulf of Mexico early Friday as they monitored weather systems that could threaten offshore platforms and coastal facilities in the next several days.
[9] The dollar and yen initially rose on Friday after the disappointing U.S. jobs report boosted safe-haven demand for the two currencies.
[10] Crude has crisscrossed the $80 level for the last few weeks as investors mull weak U.S. consumer demand and a volatile dollar. [14] JBC said two-thirds of the fall in demand would result from less travel by the unemployed while the rest would be caused by the reduction of disposable income. Crude investors are also watching signs in recent weeks of a drop in U.S. oil supplies, which increased sharply this year as demand shrank.
[6] Distillate inventories tell us the economy is not moving goods over the highway (truckers run on diesel), or rail. This conclusion is supported by third quarter results from
YRCW, and
BNI where freight volume dropped 27%. It is important to remember that current pricing on crude oil is influenced by world demand, not just U.S. demand.
[4] We expect the Dollar Index to rise today as a rise in unemployment would mean that the U.S. economy still has a long way to go. This would lead to risk aversion in the financial markets and thereby higher demand for the safe-haven dollar.
[24] The quick point here is that when the SPX/crude oil ratio is declining there is downward pressure on bond prices and downward pressure on bond prices tends to be a negative for equities. Ideally both the SPX/crude oil ratio AND the sum of the TBonds and U.S. Dollar Index hold at the lows set in early June and then resolve higher. This would swing the equity/commodity ratio upwards and effectively remove some of the pressure that we have been facing in the long end of the Treasury market since the end of September.
[12] SINGAPORE (Dow Jones)--Crude oil futures rose in Asia trade Friday, helped by stronger equities and hopes that a U.S. October employment report due later in the day will be positive.
[19] NYMEX natural gas futures, backed by a neutral weekly inventory report, ended higher, but soft cash prices, fairly mild U.S. weather forecasts and a still-struggling economy continued to limit the upside.
[17] U.S. natural gas futures ended lower on Wednesday, amid concerns over record high inventories, the struggling economy and forecasts for fairly mild, above-normal temperatures in the coming days.
[26] The U.S. Federal Reserve on Wednesday held rock-bottom interest rates for 'an extended period' and kept trillion-dollar stimulus measures in place to support a fragile recovery from recession. As expected, the Fed held its key federal funds rate at a historic low of zero to 0.25 per cent, where it has been since last December to help pull the economy out of the worst downturn since the Great Depression.
[22] At the MCX counter, crude palm oil for January contract rose by 1.29 per cent to Rs 329.50 per 10 kg with trading volume in four lots, while December contract gained by 0.96 per cent to Rs 326 per 10 kg, in 99 lots.
[18] Oil for delivery in current month contract moved up by 0.72 per cent to Rs 323.80 per 10 kg with business volume of 88 lots.
[18] Natural gas for December delivery plunged 18.7 cents to settle at $4.595 per 1,000 cubic feet. Associated Press writers Pablo Gorondi in Budapest, Hungary, Alex Kennedy in Singapore and Christopher S. Rugaber in Washington contributed to this report.
[5] Gasoline for December delivery lost 6.34 cents to settle at $1.9243 a gallon.
[5] The 20-cents per gallon spike in the price of gasoline the week of Oct. 18 (10 cents of that in one day), pushing it to $2.50 per gallon in our area, is yet another reminder of the crumbling ledge on which we stand in terms of dealing with energy costs.
[23] Reformulated blendstock gasoline prices dropped 0.0581 cents to $1.9296 per gallon.
[29] At the pump, the retail price for unleaded gasoline fell to a nation average of $2.679 per gallon from Thursday's $2.682, AAA said.
[29] Natural gas prices lost 0.18 cents to $4.602 per million British thermal units.
[29] My crystal ball says every drilling rig will be working full speed ahead by July 2011. Recession or not, lets remeber Peak Oil isn't just a concept, it's the Prime Mover; the proof being Global Warming won't be a problem when oil hits $300 per barrel.
[4] Crude traded at USD 80.12 per barrel today on NYMEX, while in the Indian market the November contract of MCX Crude oil stood at Rs.3745 per barrel.
[30] Oil rose yesterday after Energy Information Administration data showed crude oil inventories decreased by 4.0 million barrels compared to the previous week.
[27] Analysts said data from the U.S. Department of Energy (DoE) showing an unexpected drop in crude stockpiles last week was not enough to buoy the oil market.
[21] The December 2014 contract settled Friday at $90.27, down $1.72, or 1.87 percent. U.S. wholesalers continued liquidating their inventories in September, with stocks falling for the 13th consecutive month and sales increasing for the fifth straight month, Commerce Department Data showed on Friday.
[9] Later in the morning, a Commerce Department report showed that wholesale inventories fell 0.9 percent in September following an unrevised 1.3 percent decrease in August.
[28] The report showed also non-farm payroll employment fell by 190,000 jobs in October following a revised decrease of 219,000 jobs in September.
[28] The dismal jobs report reinforced concerns about oil demand as the economy struggles to recover from recession.
[10] Economic optimism and hopes of a recovery in demand helped oil prices trade higher.
[13] Risk sentiments in the financial markets provide a direction to oil prices, if investors are optimistic about the demand and economic situation then risk appetite rises and lead to demand for higher-yielding and riskier investment assets.
[13] Further rally in oil prices is dependent on the movement in the dollar as despite weak fundamental oil prices had gained 8.5% in the month of October itself.
[13] Oil prices had increased for several months, primarily tracking the decline in the dollar.
[20] You can lock in your price of fuel with a strategic investment in U.S. Oil Fund ( USO ]] USO ), or U.S. Gasoline ( UGA ). [4] We expect copper prices to trade with a positive bias but a sharp upside will be capped on the back of weak unemployment rate from the U.S. due at 7.00 p.m. IST.
[24] Economists had been expecting a decline of around 175,000 jobs in October and an unemployment rate of 9.9 percent.
[6] The release later Friday of U.S. October unemployment figures is also expected to affect the market, with economists expecting a decline of around 175,000 jobs.
[14] U.S. stocks fell at the open on the unemployment report, but erased initial losses and then turned positive.
[10] Analysts said the weaker-than-expected labor report raised fresh doubts about the sustainability of the U.S. economic recovery, and energy demand.
[7] Investors were worrying that rising unemployment rate will finally affect the economic recovery as consumers become more cautious in spending.
[15] Unemployment rate is expected to rise to 9.9% in October against 9.8% the previous time.
[24] Analysts polled by Reuters had predicted a cut of 175,000 jobs, the smallest number for 14 months, and a rise in the overall jobless rate to 9.9 percent. [11] Oil traders often look to stock markets for a sense of overall investor sentiment, and the Dow Jones industrial average rose 2.1 percent Thursday on better-than-expected jobless claims numbers and positive forecasts by Cisco Systems Inc. All major Asian indexes closed higher on Friday, while markets in Europe were little changed.
[14] Against the backdrop of falling crude oil inventories, gasoline stocks were down 400 thousand barrels and distillate inventories were down 300 thousand barrels.
[4] Crude oil inventories were down four million barrels but still 7.7% above last year's level. This was a larger drop in inventory than the market was expecting.
[4] Refinery inputs are 647 thousand barrels below last year's levels, or -4.6% Refinery inputs have been ratcheting down in recent weeks. This can be attributed to changing over to winter fuels and trying to match production with demand.
[4] The EIA also reported that motor gasoline demand has averaged 9.0 million barrels per day over the last four weeks, unchanged from the same period last year.
[27] "What we know is at $150 (a barrel last year), the world economy blew up. It will be somewhere in that range," Blanch said.
[5] The company, based in San Ramon, California, reported that overall profits dropped 51 percent to $3.83 billion, or $1.92 per share when compared with the same three-month period last year.
[3] At 31% above last year's inventory, it is still a weight on the market, not only for crude oil but also for refiners.
[4] Crude production is going down unless we build new oil production infrastructure. It has been estimated to maintain current capacity that the world needs to spend $1 Trillion/year.
[4] More demand points to higher prices, and speculators, sensing new opportunities for profit, are moving back into oil.
[23] Many analysts say, strengthening economies will boost demand for oil, and price will likely follow demand upward.
[23] We recommend selling crude oil on rise during the day.We expect prices to remain under pressure.
[26] Higher crude prices can help and hurt integrated companies like Chevron. Their oil rigs can make more money by selling it to others, but their refineries also must use the more expensive oil, and that tightens profit margins.
[3] A stronger dollar could put pressure on dollar-denominated commodities like Gold, Copper and Crude Oil.
[24] Crude oil may trade sideways to down early in the session. It is likely to take direction from the movement in equities and the dollar later in the day.
[17] The looming surplus in gas supply is set to put pressure on the current market structure, helping gas to break from crude oil and trade independently.
[25] With nearly 16 million people now out of work, traders found few reasons to expect it will return anytime soon. Crude prices shed most of their gains from earlier in the week, when financial reports showed consumers were spending more, and companies were squeezing more productivity out of their workers.
[5] Prices had risen back above $80 a barrel on Friday ahead of the jobless numbers.
[22] Spot Gold prices traded around $1,090/oz levels today after its rally to a record high this week on the back of anticipation of renewed central bank demand.
[24] On a year-to-date basis, Copper prices have risen more than 100% and are currently trading at $6,595.
[24] Kevin Klombies is a prolific writer and market analyst. After graduating in 1980 from the University of Saskatchewan with a Bachelor of Commerce degree (Honours) in Finance/Economics, he was a broker for about 16 years for Wood Gundy Inc. /CIBC Wood Gundy (changed name around 1990) Private Client Division. While at Wood Gundy, he began to create the intermarket work that would later become the IMRA newsletter. He recalls starting with a DOS version of Metastock that he used to print out charts, drawing lines on them with a pen and ruler and taping them together upside down (at times). The first market review that he put together was in 1988 and was based on annual percentage changes in U.S. M1 versus the equity markets. It ended up going from desk to desk right to the Bank of Canada, which said there was, in fact, no relationship between money supply growth and the equity markets ("which probably explains why I have so little respect for central banks," he says). Klombies says his broker career was uninspiring, mainly because he spent way too many hours running charts and too little time prospecting for business. He found that what he liked best was analyzing the markets and what he liked least was selling, marketing, and client service. He eventually left the business and continued to work on the analysis while doing some trading and consulting. He has been featured on a number of web sites, interviewed by Reuters TV in London and marketed by Agora Inc. (Daily Reckoning, etc.), but the majority of what he does is done privately and quietly.
[12] The equity markets can rally with commodity prices but it makes for a nervous trend dependant upon the daily swings in the U.S. dollar.
[12] A stronger dollar weakens commodity prices which, in turn, adds pressure to the equity markets.
[12] We expect gold prices to face pressure on the downside as negative labour data from the U.S. could reduce risk appetite and bring in profit-booking further.
[24] Toss into that scenario U.S. refineries which have cut back on the amount of gasoline being processed, and there is even more upward pressure on price.
[23] When the U.S. gets back on track, and the emerging markets return to firing on all 12 cylinders, triple digit oil is a gimme, and new highs will easily be attainable. [4] "We expect fundamentals to improve as oil demand growth resumes," Morgan Stanley said in a report.
[14] There are at least tentative signs of recovery here and there in the world, and recovery usually foretells a growing demand for oil.
[23] "Weak demand and plentiful supply affected all our major markets." O'Reilly said in a conference call with investors that he expects Asian countries, especially China, to consume more gasoline next year and lead a recovery in the refining business.
[3] Ahead of the data, analysts warned about slack energy demand as the global economy struggles to recover from the financial crisis.
[7] If the data comes in as per expectations then it would lead to risk aversion in the financial markets and increase demand for the dollar.
[24] Investors are also looking at economic data from the U.S. for further direction.
[24] The U.S. Federal Reserve said it had left official rates on hold, laying out conditions for any change based on improving employment, among other factors. U.S. energy companies said operations were normal in and around the Gulf of Mexico as they monitored weather systems that could pass by offshore platforms and coastal facilities over the next several days.
[2] Prices fell as low as $79.34, compared to a daily high of $80.62. [27] Nymex October Natural Gas futures ended in the green on Thursday, to close at $4.81 /mmbtu mark.
[13] Light sweet crude for December moved to $77.43, down $2.19 on the session.
[28] SOURCES1.
Oil rises toward $80, eyes on U.S. October jobs data | Reuters2.
Oil falls nearly 3 percent on U.S. unemployment data | Reuters3.
The Alaska Journal of Commerce - Chevron's third-quarter profit slumps 51 percent; production up 11/05/094.
Is Crude Oil Headed Lower? -- Seeking Alpha5.
The Associated Press: Oil settles lower after US unemployment report6.
The Associated Press: Oil falls below $78 as US unemployment rises7.
channelnewsasia.com - Oil prices drop as US jobless spikes8.
OIL FUTURES:Crude At One-Week Low; Unsettled By U.S. Jobs Data - WSJ.com9.
NYMEX-Crude ends nearly 3 pct off on jobless gloom | Funds | News | Reuters10.
NYMEX-Crude slides after weak employment report | Markets | Markets News | Reuters11.
Oil falls more than 2 pct on US jobs data - Forbes.com12.
Inside Futures: Relevant trading-focused information authored by key players in the futures, options and forex industries13.
Nymex crude oil prices closed at $79.70/bbl on Thursday14.
The Associated Press: Oil nears $80 a barrel amid stock market surge15.
Oil plunges as U.S. unemployment rate tops 10%_English_Xinhua16.
OIL FUTURES: Crude Drops Below $78/Bbl As Jobless Rate Rises - WSJ.com17.
Oil and natural gas daily review (November 6, 2009)18.
The Hindu Business Line : Crude palm oil rises19.
OIL FUTURES: Crude Up In Asia; Market Awaits US Jobs Data - WSJ.com20.
Uncertain appetite for oil cuts price - The Boston Globe21.
Daily Times - Leading News Resource of Pakistan22.
Oil prices drop as US jobless spikes23.
Economic growth and costly oil24.
Commodities Technical Analysis | Gold trades near $1090, copper, crude rise on dollar | 06 November 2009 | www.commodityonline.com25.
FT.com / Commodities - Oil-gas price link to weaken26.
Oil and natural gas daily review (November 5, 2009)27.
RTTNews - Latest Earnings,Upcoming Earnings, Pos Pre Announcements, Pos Pre Announcements , Positive Surprises, Negative Surprises, Hot Stocks, Stock Split Calendar, Stock Buybacks, Dividends, Negative, Positive PreAnnouncements,Surprises . 28.
RTTNews - Forex News top stories, Forex Trading, European Market Update, Currency Market Update, Forex trading. 29.
Crude oil prices slide Friday30.
Commodity Stocks News | Oil India rises as crude prices firm up | 06 November 2009 | www.commodityonline.comGENERATE A MULTI-SOURCE SUMMARY ON ANY SUBJECTEnter your search query below. WAIT 10-20 sec for the new window to open.
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