Investing.com - Crude futures fell on Thursday after Libya
declared an end to a standoff with rebels that had closed several
oil facilities and ports, with markets now expecting global supply
to rise with an end to the confrontation.
In the New York Mercantile Exchange, West Texas Intermediate
crude oil for delivery in August traded at $103.97 a barrel during
U.S. trading, down 0.50%. New York-traded oil futures hit a session
low of $103.68 a barrel and a high of $104.31 a barrel.
The August contract settled down 0.82% at $104.48 a barrel on
Nymex oil futures were likely to find support at $101.89 a
barrel, the low from June 9, and resistance at $106.09 a barrel,
Libya said earlier that it had struck a deal with rebels
occupying oil ports under terms that would have insurgents give up
control over the last two terminals and end a blockade.
The deal should add 500,000 barrels per day of crude back into
the global energy market.
The news sent futures falling on expectations for increased
supply, though prices didn't plummet, as the government and rebels
have struck deals in the past that never came to fruition.
Bullish data in the U.S. cushioned oil's losses as well.
The U.S. Department of Labor reported earlier that non-farm
payrolls rose by 288,000 in June, easily surpassing expectations
for an increase of 212,000. May's figure was revised up to a gain
of 224,000 from 217,000.
The unemployment rate ticked down to 6.1% from 6.3% in May.
Analysts had expected the jobless rate to hold steady at 6.3% last
A day earlier payroll processor ADP reported in its nonfarm
payrolls report that the U.S private sector added 281,000 jobs last
month, beating expectations for an increase of 200,000.
The data supported oil by painting a picture of a more robust
U.S. economy, one that will consume more fuel and energy going
Elsewhere, on the ICE Futures Exchange in London, Brent oil
futures for August delivery were down 0.41% and trading at
US$110.79 a barrel, while the spread between the Brent and U.S.
crude contracts stood at US$6.82 a barrel.
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