WIN: Oil falls as US job growth fails to impress even as unemployment rate drops
The price of oil fell Friday as traders fretted over job growth in the U.S. despite an unexpected drop in the unemployment rate.
Benchmark West Texas Intermediate crude was down $1.50 to US$90.24 a barrel in morning trading in New York. Oil rose about $1 a barrel immediately after the government's report but then prices slipped steadily.
In London, Brent crude, which is used to price international varieties of oil, was fell 83 cents to US$111.75 a barrel.
The U.S. Labour Department said the unemployment rate stood at 7.8 per cent in September, the first time it's been below eight per cent in nearly four years. The number of unemployed Americans is now 12.1 million, the fewest since January 2009.
Still, the 114,000 jobs created in September was only in line with what economists had expected.
"That doesn't suggest really strong job growth," Gene McGillian, broker and analyst at Tradition Energy. McGillian said the report, combined with the fact that there are ample supplies of oil and low demand, is driving down prices.
Oil jumped four per cent on Thursday following a four per cent decline on Wednesday. Traders have been trying to gauge the strength of global oil demand while also watching developments surrounding Syria for any signs of a disruption in supplies from the Middle East.
Among other energy futures traded in New York, natural gas retreated one cent to $3.40 per 1,000 cubic feet; heating oil feel three cents to US$3.16 a U.S. gallon (3.79 litres) and wholesale gasoline was flat at US$2.95 a gallon.
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