WTI oil trading near $82, eyes on US jobs data, dollar

8 October 2010 8 October 2010

BonTrade

WTI oil prices open Friday’s trading session near the $82 mark as investors await the latest weekly US jobs data and are closely watching the dollar to gauge if oil prices will head back higher.

US crude oil futures for November 2010 delivery was trading at $81.66 a barrel, 08.00 GMT on the NYMEX after falling over two percent yesterday as investors took profits.

The US Labor Department will release its monthly jobs report for September later today. Economists have forecast a decrease of 10,000 jobs and a slight rise in unemployment to 9.7%. If the report turns out to be bearish then oil futures will probably turn lower.

WTI oil prices fell the most in three weeks as the US dollar climbed slightly for the first time in three days, reducing the appeal of commodities and oil futures as an alternative investment. However gold prices still remain at all time highs near $1360 an ounce.

“We’ve had a hell of a runup the last two weeks, so it makes sense to sell, especially before tomorrow’s payroll report. We’re also falling because the dollar has rebounded after taking a hammering overnight.” said Stephen Schork of Schork Group.