US jobs data cuts 3% off oil prices
Friday, 6 November 2009 19:02Oil prices fell 3% to below $77 a barrel today after data showed the US jobless rate jumped to a 26-year high of 10.2% in October, raising concerns about a potential rebound in fuel demand.
US crude traded down $2.65 to $76.97 a barrel by 6:01pm, while London Brent crude fell $2.53 to $75.46 a barrel.
On Wednesday, the US Federal Reserve said it had left official rates on hold, laying out conditions for any change based on improving employment, among other factors.
US energy companies said operations were normal in and around the Gulf of Mexico as they monitored weather systems that could pass by offshore platforms and coastal facilities over the next several days.
Tropical depression Ida could move into the northwest Caribbean tomorrow where it was expected to become a tropical storm again, with forecasters predicting it could reach the Gulf of Mexico early Monday.
The US has a large number of oil and natural gas producing rigs in the Gulf of Mexico and a high concentration of refineries along the Gulf Coast which can face disruptions due to hurricanes.
Oil prices have risen from below $33 a barrel last December to a high for this year of $82 in October.
They were on course to gain nearly 4% this week, but market sentiment had been cautious following inventory data earlier in the week showing oil stocks at record supply levels.
Inventories of distillates, which include heating oil and diesel, are near their highest levels in 26 years.
