Oil prices closed with sharp losses on Friday in New York, in a market burdened by the report of U.S. employment, which revealed that unemployment remained at 8.2%, and a rise in the dollar to its level high against the euro for two years.
A barrel of light sweet crude ‘(WTI) with August delivery fell $ 2.77 compared to Thursday’s close at $ 84.45 on the New York Mercantile Exchange (Nymex).
In London, a barrel of Brent North Sea August delivery closed at $ 98.19 on the Intercontinental Exchange (ICE) in London, down 2.51 dollars from Thursday’s close.
Before the opening of the market “quotes were sharply lower, topeadas by fears for the global economy,” said Matt Smith of Summit Energy.
The monthly report on unemployment in the United States “certainly not calmed investors,” he added. Oil fell one U.S. dollar shortly after the publication of employment figures.
America created 80,000 jobs in June according to figures released on Friday but was not enough for the unemployment rate fell 8.2%.
“There are several factors behind the decline in crude oil prices today,” he said Bart Melek, TD Securities. “The rise of the dollar partly explains the demand is weak and there seems no monetary stimulus measures in view,” he said.
After the report, investors fled risky assets such as oil and the euro, and switched to safer securities such as U.S. currency, which implied a sharp rise of the dollar against the euro.
The report was not good, but it was not so bad “to push the U.S. Federal Reserve (Fed, central bank) to act” to revive the economy and demand, Melek said.