A greater-than-expected loss of jobs in the US has nervous oil investors backing down from yesterday’s gains resulting in prices dipping under the $70 a barrel mark. Analysts had predicted that if oil broke the $72 resistance level, then prices could shoot to $75 in short order but this is looking less likely given today’s employment figures.
Oil prices slid below $70 a barrel Friday as signs of a sluggish U.S. economic recovery discouraged stock and crude investors.
By midday in Europe, benchmark crude for November deliver was down 95 cents at $69.87 in electronic trading on the New York Mercantile Exchange. The contract added 21 cents to settle at $70.82 on Thursday.
“At $70 a barrel, investors have priced in a fairly sharp economic recovery,” said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. “That makes it vulnerable to bad economic news.”
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by Scott Boyd (see all)
- Japan’s Demographic Trap - 25 June 2012
- Officials Talk Openly of Greek Euro Exit - 16 May 2012
- Greek Voters Prepare to Roll the Dice - 15 May 2012