Crude futures extend gains on bullish US employment data

07 June 2012 15:13  [Source: ICIS news]

LONDON (ICIS)--The front-month July NYMEX crude oil futures contract extended gains on Thursday after positive employment data emerged from the US, adding to further bullish sentiment.

By 13:40 GMT, the front-month July NYMEX WTI contract touched an intra-day high at $87.03/bbl, a gain of $2.01/bbl from Wednesday's close. After the contract touched a fresh high, it softened to trade around $86.85/bbl.

At the same time, the front-month July ICE Brent contract had reached a fresh intra-day high at $102.45/bbl, a gain of $1.81/bbl compared to the close on Wednesday. The July Brent contract then edged a little lower to trade around $102.25/bbl.

According to the US Department of Labor, US jobless claims for unemployment benefits fell by 12,000 last week adding to bullish sentiment on Thursday.

In China, the People’s Bank of China cut its benchmark lending and deposit rate by a quarter point on Thursday, in the hope to stimulate investment and demand in the country.

In Europe, Spain’s sovereign bond auction was successful after the country sold more than €2bn worth of 10-year bonds. However, it was forced to pay higher yields to attract buyers.

Also in Europe, France’s borrowing costs fell to record lows. Its 10-year bonds fell to a low of 2.46% indicating that investors view French bonds as a safe-haven.

By: Kawai Wong
+44 20 8652 3214

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