U.S. jobs report, Libyan setbacks underpin crude’s move higher
By Steve Gelsi and Virginia Harrison, MarketWatch
NEW YORK (MarketWatch) — Crude-oil futures topped $107 a barrel Friday after a better-than-forecast U.S. jobs report for March, while reports of antigovernment forces losing ground in Libya added to geopolitical uncertainty about oil supplies.
Nonfarm payrolls for the month climbed by 216,000, higher than the forecast of 192,000 in a MarketWatch survey of economists, while the nation’s unemployment rate dipped to 8.8% from February’s 8.9%. See more on U.S. nonfarm payrolls and the March jobless rate.
Benchmark Nymex crude for May delivery (CLK11 107.60, +0.88, +0.83%) gained 71 cents, or 0.7%, to stand at $107.54 a barrel, having broken through $107 earlier in the session.
Oil prices have surged more than 17% this year, with geopolitical instability across parts of North Africa and the Middle East stoking supply fears.
In Libya, rebel forces struggled against government fighters, hampered by military deficiencies, The Wall Street Journal reported on its Web site Friday.
The recently renewed push by the rebels is also being compromised by a lack of any central command or organization structure, the report said.
“Oil prices are higher because the market is picking up the sense that momentum is shifting against the rebels in Libya. Three small towns have apparently fallen in the last 24 hours in what must be a disappointing turn of events for the coalition,” analysts at MF Global said in a research note late Thursday.
“Despite rebel setbacks, we should recall that it was Libyan government troops that were suffering heavy losses over the weekend, and we would not be surprised to see the tide of battle could turn once again, especially if agreement is reached to buttress rebel forces with some light arms,” the analysts said.
