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Crude Dips On Demand Worries

The price of crude oil slipped back near a one-month low Friday morning as traders await cues from the employment data due out later today. Also, the OPEC signaled that it would increase output to curb prices.

The OPEC stated that the members are working to bring down oil prices which are too high at current levels.

Light Sweet Crude Oil (WTI) futures for June delivery, lost $1.23 to $101.31 a barrel. Yesterday, oil slipped back to a 2-week low on a strengthening U.S. dollar and some mixed economic data with an ISM report showing the service sector index to have slowed in April.

This morning, the U.S. dollar was steady near its two-week high versus the euro and the Swiss franc, while trading flat against sterling. The buck continued to bounce back from its 2-month low versus the yen.

In economic news, euro zone private sector activity declined in April at the fastest rate since October 2011, final data released by Markit showed. The composite output index dropped to 46.7 in April from 49.1 in March. The headline index also came in well below its earlier flash estimate of 47.4

Meanwhile, data from the Eurostat revealed that retail sales volume in the euro zone climbed 0.3 percent month-on-month in March, offsetting February's 0.2 percent drop. Economists were expecting sales to remain flat in March. Sales were down 0.2 percent on a yearly basis. The rate of decline slowed from the 2.1 percent drop seen in February. Also, March's drop was smaller than the 1.1 percent fall forecast by economists.

Traders will look to the monthly non-farm payroll report from the U.S. Labor Department due out at 8:30 am ET. Economists expect non-farm payrolls for April to increase by 165,000 and the unemployment rate to remain unchanged at 8.2 percent. In March, the economy added 120,000 jobs, far below the 200,000 job additions forecast by economists.

by RTT Staff Writer

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