Oil market concluded last week in negative territory. Quotes fell against the background of regular data on the U.S. job market. We look forward to the figures for employment in the non-agricultural sector of the country (Non-farm payrolls) were worse than analysts' forecasts, serving as another indication of the weakness of the labor market. For bidders American oil makrostatistika became another blow to hopes for a speedy recovery of demand for energy.
As a result of trades on Friday, August 6 at the New York Mercantile Exchange price of a futures contract on the mark WTI for September delivery fell 1.31 dollars - up to 80.7 dollars per barrel. At the InterContinental Exchange in London, the September contract for Class Brent Crude it fell by 1.45 dollars to close at a mark of 80.16 dollars per barrel.
Total number of jobs in the United States declined in July at 131 thousand Despite the fact that the main cause of the fall rate was the decreased number of workers temporarily employed for the census (148 thousand), the dynamics of employment in other areas, too, has disappointed investors . Thus, although in the past month in the private sector had been hired to work 71 thousand people, this figure was below expectations (90 thousand). Moreover, this component showed a positive trend because the data for the previous month was revised downwards (from 83 thousand to 31 thousand).
"Despite the need for an amendment to reduce the state's temporarily hired for the census, a critical analysis of the July employment report points to the fact that the U.S. labor market is still lagging behind the pace of recovery from the country's economy as a whole - analysts said Canadian Imperial Bank of Commerce . - Weak employment dynamics supports our view that the Reserve will keep interest rates unchanged until the end of 2012. In addition, it increases the weight of arguments in favor of additional monetary incentives provided by the central bank, although it is highly unlikely that the report is significant enough to induce the FOMC to take this step at the next meeting.
Data on employment in the U.S. have had a very negative impact on the dynamics of the oil market on Friday. "The fact that the U.S. economy creates a lack of jobs, is now the fundamental news for the oil market - commented analyst on energy Citi Futures Perspective Tim Evans. - There is no indication that the situation would soon change. Doubts about demand is present at the market, and oil reserves remain at a high level. "
Friday's macro-economic background has caused the fall of stock indices and the weakening dollar, reducing the price of oil. Index broad market Standard & Poor's 500 dropped to 0.37%, the index of "blue chips" Dow Jones Industrial Average lost 0.20%, and high-tech NASDAQ fell by 0,2%. In Europe, Germany's DAX fell 1.17%, the British FTSE 100 - on 0,62%, French CAC 40 - at 1.28%.
"Oil prices follow equity markets for some months. Data on employment put pressure on share prices, and the" black gold "followed behind them" - said president of the American brokerage Excel Futures Inc. Mark Waggoner.
Dollar August 6 fell against the euro on 0,7% - to 1.3283 dollars / euros. The weakening U.S. dollar increases the attractiveness of oil as an alternative investment.
