Crude falls on economy worries, strong dollar ahead of US jobs data

04 May 2012 13:04  [Source: ICIS news]

SINGAPORE (ICIS)--Crude futures fell by more than $1/bbl on Friday ahead of the release of key US employment data, as a stronger dollar and eurozone economy worries softened prices.

At 11:27 GMT, June Brent crude on London’s ICE futures exchange was trading at $115.19/bbl, down by 89 cents/bbl from the previous close. Earlier, the North Sea benchmark fell to a session low of $114.63/bbl, down by $1.45/bbl.

June NYMEX light sweet crude futures (WTI) were trading at $101.22/bbl, down by $1.32/bbl on the previous close. Earlier, the US benchmark declined to a session low of $101.10/bbl, down by $1.44/bbl.

The US dollar strengthened against other leading currencies on Friday amid ongoing worries over economic health of the eurozone. The stronger US dollar made dollar-denominated commodities such as crude less attractive to international investors.

Traders also awaited the release of closely followed US non-farm payroll data for April. There were expectations that if the data reveals weak employment figures pressure could build on the US Federal Reserve for a further round of monetary easing.

Markit, the financial information service provider, released its eurozone composite purchasing managers index (PMI) which revealed a decline to 46.7 in April from 49.2 in March. The fall in the PMI Index indicates a significant contraction in eurozone private sector which the Markit attributed to weak manufacturing exports and declines in new business.

Recent weak economic data from Europe and the US has raised concerns over global demand growth in 2012.

By: James Dennis
+65 6780 4359

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