Crude oil futures declined this morning amid market jitters ahead of the infamous jobs report, where equities declined and the dollar gained grounds. The jobs report is expected to show continued weakness in the US economy and foreshadowing further negativity for the outlook.
The ADP report this week reported further jobs losses in the private sector, which is considered a hint for the nonfarm payrolls today.
Crude oil futures for November settlement yesterday opened at $83.25 rising to set the highest above the marginal $84.00 at $84.40 and recorded the lowest at $81.00 to close near at $81.15 per barrel.
Crude prices’ decline was influenced by the dollar’s appreciation. The gauge for greenback’s performance the dollar index which tracks its movement versus its major six counterparts traded today around 77.50 areas compared to its lows yesterday at 76.90, the lowest recorded this year.
Commodities inclined with the start of the session yesterday, though relentlessly the dollar managed to shake the market once again and trigger the reversal. The move was evident on precious metals and especially gold which reversed lower from the new historic high recorded at $1364.75 compared to the low recorded today at $1327.41 per ounce.
The market is likely to continue amid jitter and fluctuations ahead of the nonfarm payrolls from the US at 12:30 GMT. The US economy is expected to have shed another 5 thousand jobs in September where median estimates ranged from 75 thousand jobs lost to 75 thousand added. Unemployment is also expected to have ticked up to 9.7% from 9.6%.
NYMEX trading this morning saw motor gasoline reach $212.05 rising $0.25, heating oil is trading around $225.55 higher by $0.370, while natural gas futures added 0.015 to $3.632. As for London Brent the contract rose by 0.060 to $83.49.
WTI crude futures for November opened today at $81.40 recording so far the highest of $81.80 and the lowest at $81.12 and currently hovering around $81.60.
