Crude gains on upbeat U.S. jobs report

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Investing.com - Crude futures rose on Friday after data revealed the U.S. economy continued to add jobs in May, in the private sector particularly, which sparked demand for oil due to sentiments that the world's largest economy will demand more fuel and energy going forward.

On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in July traded at $102.68 a barrel during U.S. trading, up 0.20%. New York-traded oil futures hit a session low of $102.31 a barrel and a high of $103.07 a barrel.

The July contract settled down 0.16% at $102.48 a barrel on Thursday.

Nymex oil futures were likely to find support at $101.60 a barrel, Thursday's low, and resistance at $103.69 a barrel, Wednesday's high.

The U.S. Labor Department reported earlier that the economy added 217,000 in May, more or less in with expectations for a 218,000 increase, after a 282,000 rise in April, whose figure was revised down from a previously estimated 288,000 gain.

The private sector added 216,000 jobs last month, exceeding expectations for a 210,000 gain, which drew market applause.

The report also showed that the U.S. unemployment rate remained unchanged at 6.3% last month compared to expectations for a rise to 6.4%.

While not earth-shattering, the jobs report pointed to an economy that remains on the mend and is headed for better days, which gave oil prices a boost.

Elsewhere, a European Central Bank decision to loosen policy lifted oil prices by spurring hopes the European economy will demand more energy and fuel once recovery picks up.

The European Central Bank on Thursday cut its benchmark interest rate to a record-low 0.15% from 0.25%, cut its deposit rate to -0.1% and said it will support the banking sector to spur lending via targeted long-term credit injections.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for July delivery were down 0.13% and trading at US$108.65 a barrel, while the spread between the Brent and U.S. crude contracts stood at US$5.97 a barrel.

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This article appears in: Investing , Forex and Currencies

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