Crude oil bounces back to near US$93 as weak jobs data may prolong Fed stimulus
The price of oil jumped more than $1 a barrel Friday as the U.S. economy added fewer jobs than expected, fuelling speculation that the Federal Reserve will reconsider its plans to slow economic stimulus.
Benchmark West Texas Intermediate crude for February delivery gained $1.06 to US$92.72 on the New York Mercantile Exchange.
The world's largest economy added just 74,000 thousand jobs in December, the Labor Department said, while analysts had forecast the addition of 196,000 jobs. The unemployment rate fell from 7.0 per cent to 6.7 per cent, but it was mostly because of a drop in the number of people seeking work.
The Fed said in December it would start cutting back its bond purchasing program meant to spur economic growth by $10 billion a month. Outgoing Fed Chairman Ben Bernanke said that further cuts would depend on how many new jobs were added in coming months.
The stimulus program, which has also kept interest rates low, has helped raise oil prices by weakening the dollar and also by attracting investors to commodities in search of higher profits.
A weaker dollar usually boosts oil prices by making crude cheaper for traders using other currencies. On Friday, the euro was up at $1.3674 from $1.3604 late Thursday in New York.
Oil prices have been mostly falling since Dec. 27, when they topped US$100 for the first time in since October.
Brent crude, used to set prices for international varieties of crude, gained 65 cents to US$106.61 on the ICE Futures exchange in London.
In other energy futures trading on Nymex, wholesale gasoline added three cents to US$2.67 a U.S. gallon (3.79 litres), heating oil gained two cents to US$2.94 a gallon and natural gas was flat at US$4.05 per 1,000 cubic feet.
(TSX:ECA), (TSX:IMO), (TSX:SU), (TSX:HSE), (NYSE:BP), (NYSE:COP), (NYSE:XOM), (NYSE:CVX), (TSX:CNQ), (TSX:TLM), (TSX:COS), (TSX:CVE)
Read more Business News
- Fruitful weatherCentral Okanagan - 12:56 pm
- Another thunderstorm warningBC - 11:46 am
- Smash grab & runVernon / N. Okanagan - 10:24 am
- No space for student newspaperKelowna - 5:00 am
|QHR Technologies Inc||1.21||0.00|
|Anavex Life Sciences||0.26||0.00|
|Copper Mountain Mining||2.88||-0.04|
|Sunrise Resources Ltd||0.025||-0.005|
|Mission Ready Services||0.215||-0.015|
Establishing a joint account may seem like a great strategy at first glance. However, there are many factors that must be considered before taking this action. This article will explore the use of &ls...
Let’s face it; nobody wants to pay for legal services if they do not have to, but if you have been injured in an accident you may have thought about hiring a lawyer to help you navigate your cla...
My screen printing business, like many others, started as a one-man operation. It was located in a small building, not much better than a shack, with a telephone, a big table where I ate lunch and (oc...