--Crude oil and gasoline gain on improving jobs picture
--Nymex crude was recently 22 cents higher at $86.48 a barrel
--U.S. nonfarm payrolls rise by 146,000; unemployment rate drops to 7.7%
By Jerry A. DiColo
NEW YORK--Crude-oil futures rose Friday after an improving U.S. jobs picture suggested fuel demand will increase.
The U.S. added 146,000 jobs last month while the unemployment rate fell to 7.7%, according to the Labor Department, bucking economists' forecasts for a weaker employment picture following Hurricane Sandy.
Light, sweet crude for January delivery recently traded 22 cents higher at $86.48 a barrel on the New York Mercantile Exchange, after going as high as $86.92 a barrel immediately following the report.
Brent crude on the ICE futures exchange traded 34 cents higher at $107.37 a barrel.
The data sparked big moves across financial markets, boosting sectors tied to economic growth such as stock-market futures and commodities, while gold and Treasurys sold off.
Gasoline futures posted some of the biggest gains among commodities, with January futures recently 2.10 cents, or 0.8% , higher at $2.6179 a gallon. The rise ended a five-day streak of falling prices as traders bet that an improving jobs picture would result in more automobiles hitting the road.
"What we care about is our transportation fuel," said Carl Larry, head of trading adviser Oil Outlooks and Opinion. " When we see these jobs created, we get more people driving to and fro, and that's what matters."
Fuel demand is closely tied to the fate of the broader economy. The slow recovery in the U.S. over the past several years has depressed gasoline and diesel usage, helping to keep a lid on oil and gasoline prices despite some recent shortages in the Northeast when Sandy damaged fuel-distribution terminals.
Over the past month, oil prices have remained stuck in a trading range between $85 and $90 a barrel. While economic growth in the U.S. is improving, traders remain concerned about China's slowdown and Europe's sovereign debt crisis.
More recently, difficult negotiations between the White House and Congress to prevent tax increases and budget cuts in January has kept some traders on the sidelines.
January heating oil recently traded 0.13 cent lower at $2.9419 a gallon.
