WSJ:OIL FUTURES: Crude Down As Investors Await US Unemployment Data
--Oil down as investors await U.S. unemployment data for August
--US Gulf storm supporting prices as some oil, gas production shuttered
--Trade seen thinning going into U.S. holiday weekend
By Selina Williams
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Crude oil futures were down Friday as investors awaited the release of U.S. unemployment data for August as an indicator of whether the world's largest oil consumer is heading back into recession.
But a storm in the U.S. Gulf is preventing prices from falling too far. Several of the largest oil and gas producers have halted production from their platforms and around 5.7% of U.S. Gulf crude output and 2.4% of gas production has been shut in due to the storm. Delays to North Sea crude cargoes and outages in Nigeria are also supporting oil prices.
At 1059 GMT, the front-month October contract on the New York Mercantile Exchange was trading down 72 cents, or 0.8%, at $88.21 per barrel. The front-month October Brent contract on London's ICE futures exchange was down 65 cents, or 0.6%, at $113.64 a barrel.
The U.S. is scheduled to publish its monthly non-farm payrolls report at 1230 GMT. Economists surveyed by MarketWatch expect that the U.S. economy added just 53,000 jobs in August, which would be less than half the number added in July. The unemployment rate is expected to hold steady at 9.1%.
Prices got a lift from Thursday's data showing fewer jobless claims in the U.S. last week and unexpected growth in the U.S. manufacturing sector last month.
Although the debate still rages over whether the U.S. economy will avoid recession or not, the bulls seem to be unshakeable in their confidence, analysts said.
"It's a case of good data is bullish, and bad data increases the chances of QE3 action and so is also bullish," PVM said in a note, referring to a potential third round of quantitative easing in the U.S. that would weaken the dollar and ultimately strengthen oil prices.
Either way, trade is expected to thin out after the release of the nonfarm payrolls ahead of the Monday holiday in the U.S. The Labor Day holiday Monday marks the end of the summer driving season in the U.S.
At 1100 GMT, the ICE's gasoil contract for October delivery was down $11, or 1.1%, at $955.50 per metric ton, while Nymex gasoline for October delivery was down 279 points, or 1%, at $2.8648 per gallon.
-By Selina Williams, Dow Jones Newswires; +44 207 842-9262; selina.williams@dowjones.com
