SG:Oil hovers above USD 100 as traders eye OPEC and US jobs
AP reported that oil prices hovered above USD 100 per barrel in Asia as traders eyed this week’s meeting of petroleum exporting countries and mulled signs of slowing US economic growth which could undermine crude demand.
Benchmark oil for July delivery was down 8 cents to USD 100.14 per barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 18 cents to settle at USD 100.22. In London, Brent crude for July delivery was down 45 cents to USD 115.39 per barrel on the ICE Futures exchange.
Investors will be closely watching Wednesday’s meeting in Vienna of the Organization of the Petroleum Exporting Countries or OPEC. The 12 member cartel, which produces about 40% of global crude output will be debating whether to boost production to help lower prices.
Traders are also gauging the impact of a weaker US economy on consumer spending. The Labor Department said Friday the United States added 54,000 jobs in May, the fewest in eight months. During the previous three months, the economy added an average of 220,000 jobs per month.
Energy consultant The Schork Report said that we are focusing our attention on the OPEC meeting and the fallout from Friday’s jobs data. Last week issued daily telltales that the pace of the US economic recovery is in serious doubt.
In other Nymex trading in July contracts, heating oil was steady at USD 3.06 a gallon and gasoline dropped 0.9 cent to USD 2.98 a gallon. Natural gas futures gained 6 cents to USD 4.77 per 1,000 cubic feet.
