WTI oil price down two percent at $80 on US jobs data

6 August 2010 6 August 2010

BonTrade

WTI oil prices fell around two percent in afternoon trading today, back down to the $80 mark as the latest grim US jobs data was weaker than had been thought.

US Light crude oil futures for September 2010 delivery was trading at $80.34, 18.45 GMT on the NYMEX after opening today’s session over $82.50.

“The US jobs market improvement has slowed to a glacial pace, consistent with third quarter growth even slower than the second,” said Nigel Gault, chief US Economist at IHS Global Insight.

As a result, the US stock market fell on the report and all three major US indices are trading down around 1.4 percent, with oil prices and other commodities sliding lower.

“Oil prices may be subject to push pull in investment sentiment as a hedge against inflation and pressure from remaining concerns over the prospects of slow economic growth,” said an energy report from Sucden Financial in London.

WTI oil prices have broadly tracked stock markets recently and big movements are having a similar effect on crude futures.