• 3 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 5 minutes Could Tesla Buy GM?
  • 11 minutes Global Economy-Bad Days Are coming
  • 17 minutes Venezuela continues to sink in misery
  • 11 hours OPEC Cuts Deep to Save Cartel
  • 3 hours What will the future hold for nations dependent on high oil prices.
  • 2 days End of EV Subsidies?
  • 6 hours Price Decline in Chinese Solar Panels
  • 18 hours Congrats: 4 journalists and a newspaper are Time’s Person of the Year
  • 20 mins Alberta Cuts Push Prices Too High
  • 15 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 18 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 1 day Permian Suicide
  • 1 day GOODBYE FOREIGN OIL DEPENDENCE!!
  • 1 day Asian stocks down
  • 1 day IT IS FINISHED. OPEC Victorious
Alt Text

Yieldcos Are Back And Better Than Ever

Yieldcos have had a rocky…

Alt Text

How To Spot Top E&P Stocks In 2018

As sentiment in oil markets…

Alt Text

Venezuela Takes Unprecedented Action To Stabilize Currency

Venezuelan President Nicolas Maduro has…

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

Trending Discussions

U.S. Jobs Data Propels Crude Oil Above $80 a Barrel

Oil Market Summary for 03/01/2010 to 03/05/2010.

Jobs data indicating that U.S. economic recovery might be picking up steam finally pushed crude oil futures decisively over the stubborn $80 a barrel threshold. Nymex’s benchmark West Texas Intermediate settled Friday at $81.50 a barrel, a seven-week high, after topping $82 in intraday trading.

An unchanged unemployment rate of 9.7% and a smaller-than-expected drop in payrolls propelled both stocks and commodities higher on Friday. Earlier in the week, industry job data also came out better than expected, pushing crude just above the $80 a barrel mark.

Any improvement in the labor market would translate into more commuter driving, more vacation driving this summer and generally greater energy demand, analysts said.

The jobs figures trumped other data, such as increases in inventories, that normally dampen oil prices. Oil inventories rose by 4 million barrels in the week, well ahead of consensus forecasts for a gain of only 1 million barrels.

Remarks by Chinese Premier Wen Jiabao at the opening of the National People's Congress on Friday expressing continued support for the economy also pushed prices higher, analysts said. Wen said the economy was on track to grow 8% this year. Recent efforts by Chinese authorities to curb bank lending have led to uncertainty about Chinese growth prospects.

But the situation in Europe with Greece’s fiscal crisis weighing on the euro continued to unsettle markets. Greece successfully placed a bond issue this week, but questions remain about the stability of the euro zone. The euro inched above the $1.36 mark in late Friday trading.

Oil prices also overcame a nearly 4% drop in natural gas prices on Thursday. The benchmark Nymex contract fell 18.2 cents on Thursday to settle at $4.575 a million British thermal units. Traders concluded that cold winter weather was now over, analysts said.

The draw-down in gas storage was only 116 billion cubic feet in previous week, less than the consensus forecast, so that total gas storage remains above the five-year average. Natural gas futures settled only marginally higher on Friday at $4.595/MMBtu.

Natural gas price trends are more often decoupled from crude oil trends as increased output of shale gas in the U.S. creates a different supply and demand situation.

The Commodity Futures Trading Commission has begun flexing some enforcement muscle in energy futures trading. The CFTC fined UBS for exceeding position limits in heating oil and natural gas contracts, and the U.S. Oil Fund, an exchange-traded fund, said the agency may charge it with wrongly reporting some trades.

But the UBS fine was quite small, only $130,000, and the fault in the USO reporting may lie with the broker or clearing house. Even so, commentators said these may be early signs that the CFTC will be following through on its pledge to police futures trading more carefully.

By. Darrell Delamaide




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News