Oil Extends Fall to 3% Weekly Loss

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Oil Extends Fall to 3% Weekly Loss

Crude oil futures fell on Friday amid the weak US jobs report, which revived fear of the commodities’ fall in demand.

The disappointing jobs report cast doubt about the strength of the US economy, which is the biggest consumer of oil in the world.

According to Market Watch, October delivery light sweet crude futures fell $1.16 by 1.2% to stand at $93.29 per barrel at the New York Mercantile Exchange. The weekly losses were 2.8%.

On the London’s ICE, October Brent crude dropped 1% or $1.01 to $100.82 per barrel. The weekly loss for the Brent was 2.3%.

October gasoline blendstock reformulated by Nymex stood at 2 cents lower, a drop of 0.6% to $2.5834 per gallon. Gasoline futures lost 1.5%.

October delivery heating oil fell almost 1.4% or 2 cents to $2.8192 per gallon, while natural gas for the same month dropped 0.7% or 2.6 cents to $3.7930 for a million British thermal units.

Simmons & Co. analysts said, “Natural gas will remain a challenged commodity in 2015. Assuming normal winter weather, we believe the 2015 Us natural gas supply demand outlook will be challenging, perhaps the toughest year for the gas market since 2012 (the years there was no winter).”

As reported by Reuters, Tradition Energy analyst, Gene McGillian said, “US economic growth was supposed to counter the slowing in China and Europe and the payrolls report threw a little cold water on that idea.”

Oil prices extended their decline after US President Barrack Obama expressed skepticism about the ceasefire in Ukraine.

Price Futures Group analyst, Phil Flynn said, “Sanctions on Russia remaining in place keeps the market concerned about demand and the Europe’s economy.”

The downward pressure on the prices of oil has been increased by the rising production in US crude glut in Asia and the Atlantic basin, and the potential for increased exports from OPEC member countries, Iran and Libya.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com