(RTTNews) - The price of crude oil edged down near $98 Friday morning as traders await cues from the U.S. non-farm payrolls data, due out later today.
In news bullish to oil, JP Morgan upped its oil price forecasts for second half of 2011 and 2012, due to the impact of the International Energy Agency's decision to release strategic crude stocks. For the third quarter, the price expectations hiked to $110 a barrel from $100 and for the fourth quarter to $115 a barrel from $105 and the overall 2011 forecast to $112 a barrel from $107.
Light Sweet Crude Oil (WTI) futures for August delivery were down $0.58 to $98.09 a barrel. Yesterday, oil ended at a fresh 3-week high, adding 2 percent as demand worries eased after the EIA reported drop in U.S. crude oil and gasoline inventories last week.
Thursday during trading hours the EIA said U.S. crude oil inventories dipped by 900,000 barrels and gasoline inventories eased 600,000 barrels in the week ended July 01. Analysts were expecting 2.4 million drop in crude oil inventories, while gasoline stocks are seen rising by 200,000 barrels last week.
This morning, the U.S. dollar advanced to a fresh 2-week high versus the euro and sterling, while advancing to a monthly high against the yen. The buck was ticking higher versus the Swiss franc.
Traders will look to the non-farm payroll report from the U.S. Labor Department, due out at 8.30 a.m. ET. Economists expect 105,000 job creations, up from the earlier 54,000, and the unemployment rate to ease to 9.0 percent from 9.1 percent.
