Print | Close this window NYMEX-Crude dips on economy worry, high stockpiles Thu Sep 2, 2010 1:31pm GMT NEW YORK, Sept 2 (Reuters) - U.S. crude oil futures prices slipped on Thursday, weighed by concerns about a slowing economic recovery and high oil inventories in a cautious market ahead of Friday's key August nonfarm payrolls report from the United States. Thursday's dip followed a 2.77 percent price jump on Wednesday, fueled by encouraging manufacturing data from China and the United States. Crude futures pared losses initially after a government report that new jobless benefit claims fell from the prior week. Initial jobless claims fell to 472,000 in the week to Aug. 28, the Labor Department said, down from a revised higher 478,000 the previous week. [ID:nN02234404] Oil prices fell despite a weaker dollar, which is usually supportive to crude prices, and also higher equities markets and several tropical weather systems churning in the Atlantic. FUNDAMENTALS * On the New York Mercantile Exchange, October crude CLV0 fell 45 cents, or 0.6 percent, to $73.46 a barrel by 9:18 a.m. EDT (1318 GMT), trading from $73.11 to $74.19. * The European Central Bank held interest rates at a record low, and is expected to keep its liquidity safety net for banks in place as well amid a lopsided recovery and worries about vulnerable banks. [ID:nLDE6810DM] * Iran has increased production of crude from its Hengam offshore oilfield to 10,000 barrels per day, Oil Minister Massoud Mirkazemi told state television. [ID:nHAF538280] * Tropical Storm Gaston on Thursday was churning west in the Atlantic on a path that could take it into the Caribbean Sea. Gaston was expected to strengthen gradually over the next 48 hours and could become a hurricane by Sunday or Monday, the U.S. National Hurricane Center said. [ID:nN02164129] * Hurricane Earl, located about 355 miles south of Cape Hatteras, North Carolina, remained a powerful Category Four storm. Though not forecast to make a U.S. landfall, it was expected to pass within 100 miles of North Carolina's Outer Banks barrier islands late Thursday or early Friday. MARKETS NEWS * U.S. stock index futures edged higher after the first-time claims for jobless benefits report. [.N] * The euro rose versus the dollar in the aftermath of comments from European Central Bank President Jean-Claude Trichet. [USD/] For highlights of Trichet's comments, see [ID:nECBNEWS] The dollar index .DXY was weaker. * World stocks scaled a two-week peak on optimism from strong U.S. and Chinese manufacturing data. [MKTS/GLOB] * Gold rose towards $1,250 an ounce ahead of U.S. data [GOL/] UPCOMING DATA/EVENTS * Commerce Department reports July factory orders at 10 a.m. EDT (1400 GMT). Economists surveyed by Reuters forecast a 0.3 percent increase after June's 1.2 percent drop. * National Association of Realtors issues pending home sales for August at 10 a.m. EDT (1400 GMT). Economists in a Reuters survey predicted a 1 percent drop after June's 2.6 percent fall. * EIA reports natural gas inventories at 10:30 a.m. EDT (1430 GMT). Analysts surveyed by Reuters forecast rise of 53 billion cubic feet. * U.S. August nonfarm payrolls data on Friday at 8:30 a.m. EDT (1230 GMT). 9:18 LAST NET PCT LOW HIGH CURRENT DAY AGO CHNG CHNG VOL VOL CLc1 73.46 -0.45 -0.6% 73.11 74.19 74,462 469,412 CLc2 74.80 -0.56 -0.7% 74.45 75.45 36,411 180,764 LCOc1 75.50 -0.85 -1.1% 75.21 76.35 57,203 159,766 RBc1 1.8827 -0.0064 -0.3% 1.8737 1.8987 6,560 12,468 RBc2 1.8859 -0.0091 -0.5% 1.8772 1.9021 2,992 52,596 HOc1 2.0207 -0.0204 -1.0% 2.0152 2.0419 6,778 12,399 HOc2 2.0447 -0.0188 -0.9% 2.0393 2.0658 2,089 72,666 * NYMEX crude oil for October CLc1 fell 45 cents to $73.46 a barrel by 9:18 a.m. in volume of 74,480 lots. (Reporting by Robert Gibbons; Editing by Walter Bagley)

Source