By MarketWatch
NEW YORK (MarketWatch) — Oil prices gave up earlier gains on Monday, after crude topped $83 a barrel, while the U.S. dollar pared its earlier decline.
Crude prices had been in positive territory in the Asian and European sessions, when the dollar was in worse shape after weekend meetings of global officials.
U.S. jobs data on Friday increased the probability that monetary authorities would act sooner rather than later to help the economy.
The contract for November delivery fell 38 cents to $82.33 on the New York Mercantile Exchange.
Crude rose as high as $83.50 earlier.
“Fundamentals are not strong enough to support lasting strength,” noted analysts at Action Economics.
U.S., Canadian and Japanese bond markets are closed Monday, potentially limiting liquidity in other markets.
The dollar index (DXY 77.22, -0.11, -0.14%) , a measure of the U.S. unit against a basket of six major currencies, traded at 77.241, down from 77.295 in late North American trade on Friday.
Crude-oil futures ended higher on Friday, fueled by strength in the equities market and a weaker dollar. Crude advanced 1.3% last week, following gains in the two previous weeks.
On Friday, the Labor Department reported the U.S. economy lost 95,000 jobs, fueling expectations that the Federal Reserve will soon resume large-scale purchases of bonds to prop up the economy in a program known as quantitative easing. Read about U.S. jobs report.
“Oil prices are buoyed by expectations of QE despite a softer nonfarm-payrolls data,” said analysts at Barclays Capital. Oil “remains susceptible to a correction, should sentiment turn.”
