WTI oil price ends week under $87 on poor US jobs data
SylviaHunt30US WTI oil futures end the week back under $87 a barrel as oil prices and stock markets headed lower after a US government report showed that the American economy added no jobs in August, stoking fears of a double dip recession.
WTI Oil Futures – Closing Price
US Light crude oil futures for October 2011 delivery ended the week’s trading session at $86.72 a barrel on the NYMEX, however after six straight trading day gains, US oil futures closed $1.35 higher than last weeks Friday close of $85.37 a barrel.
US Jobs Data
The US government reported that job creation ground to a halt in August, leaving US unemployment at 9.1 percent, adding to fears of a double dip recession, a stark sign of trouble in the world’s largest economy.
“The assumption is growing that the global economy isn’t performing particularly well, oil inventories are likely to remain high, particularly in the US.” said Bart Melek, head of commodity strategy for TD Securities.
Gulf Tropical Storm – Super Soaker
However US crude oil futures remain high than last week’s closing price as traders monitored a storm in the Gulf of Mexico that threatened to disrupt oil supplies in the southern America, which could temporarily push up oil prices.
Several of the largest oil and gas producers have halted production from their platforms and around 5.7 percent of US Gulf crude output and 2.4 percent of gas production has been shut in due to the storm.
Calling the storm a “super soaker” forecasters at the National Hurricane Center said it could dump 10 to 15 inches of rain throughout the region and trigger a storm surge of two to four feet.
View post:
WTI oil price ends week under $87 on poor US jobs data
