US crude futures rise following weaker-than-expected US jobs data

06 September 2013 15:00  [Source: ICIS news]

LONDON (ICIS)--NYMEX light-sweet crude oil futures gained more than $1.00/bbl on Friday as weaker-than-expected US jobs data is likely to prevent the Federal Reserve from tapering its asset purchase programme in September.

By 13:00 GMT, the front-month October NYMEX WTI contract touched an intra-day high at $109.57/bbl, up $1.20/bbl compared with the previous settlement. The contract then edged lower to trade around $109.30/bbl.

At the same time, the front-month October ICE Brent contract was trading around $115.70/bbl, having touched an intra-day high earlier at $115.93/bbl, a gain of 67 cents/bbl compared to Thursday’s settlement.

The US added 169,000 new jobs in August, less than most forecasts. However, the overall unemployment rate ticked lower to 7.30% from 7.40% because fewer people were searching for work, according to data published by the US Department of Labor.

The weaker-than-expected jobs data in August is likely to prevent the US Federal Reserve from tapering its monetary easing programme until later this year. The Federal Reserve has repeatedly said that the programme could be tapered earlier if the employment situation in the US improves.

The US Federal Reserve currently spends up to $85bn/month to support the US economy.

By: Kawai Wong
+44 20 8652 3214

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