• 4 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 minutes China Faces Economic Collapse
  • 13 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 15 minutes Iran in the world market
  • 18 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 2 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 42 mins Trump Will Win In 2020 And Beyond..?
  • 54 mins Never Bring A Rapier To A Gun Fight
  • 23 mins Bahrain - U.S.: Signed Deal To Buy Patriot Missiles
  • 17 hours USAvChina.com
  • 6 mins USA Wants Iran War -- Shooty Shooty More
  • 8 hours Lest We Forget... A Brief Timeline of China's Modern History
  • 1 min Democrats and Gun Views
  • 4 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 12 hours Visualizing US Oil & Gas Production (Through May 2019)
  • 2 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
Darrell Delamaide

Darrell Delamaide

Darrell Delamaide is a writer, editor and journalist with more than 30 years' experience. He is the author of three books and has written for…

More Info

Premium Content

Crude Prices Surge in Week, but Jobless Figures May Dampen Rise

Oil Market Summary for 03/29/2010 to 04/02/2010

In a week shortened by a holiday, crude oil futures reached an 18-month high, but U.S. jobless data released on Friday while commodities markets were closed may temper enthusiasm when markets reopen on Monday.

The U.S. economy added 162,000 jobs in March, the biggest gain in three years. Although the headline unemployment rate remained at 9.7% and the March figures were buoyed by temporary hires at the Census Bureau, the positive showing prompted some analysts to suggest the Federal Reserve may consider raising interest rates.

The dollar gained in Friday currency trading, partly on interest-rate speculation. Also, U.S. Treasuries declined following the jobless data, pushing yields up to their highest levels in more than nine months, in another sign that some investors see a chance of the Fed acting more quickly on interest rates. Bond markets are usually closed on Good Friday but opened for a morning trading session to react to the unemployment figures.

 The benchmark West Texas Intermediate settled at just below $85 a barrel on Thursday, at $84.87, after closing Wednesday at $83.76 to mark the fifth consecutive quarter of gains for oil prices. The decisive move above $80 came in the same week as OPEC officials reiterated their conviction that oil prices should stay in the $70 to $80 a barrel range.

Thursday’s close was the highest since October 2008. Positive economic reports from around the world were bullish for oil demand, analysts said. While some thought crude might be poised to break out beyond $85, others cautioned that oil has met resistance in recent months as it neared that threshold. The benchmark oil contract closed at $80 in the previous week.

The belief that the Fed will hold interest rates low has supported the rise in oil prices. But even though the U.S. jobless figures were bullish for the economy, the prospect of higher interest rates would dampen expectations for the economy and for oil demand. By the same token, a dollar boosted by interest-rate expectations would also dampen any rise in oil prices.

Wednesday’s gain in oil prices came in the face of ever higher oil inventories, as the Energy Information Administration reported a gain of 2.9 million barrels on the week. Gasoline inventories also increased, against market expectations of a decline.

By. Darrell Delamaide




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Anonymous on April 06 2010 said:
    Good summary, Darrell. Looking elsewhere I saw that the oil price has touched $86/b. How high is it going to go?
    Is it going to reach 90 this month, and 100 during the merry month of May? For all the good it will do, now I understand why President Obama gave the signal to start offshore exploration again. Lets hope that the decision makers are on their toes during the coming months.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play