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Oil continues lower as data points weigh

By: Investing.com
Posted: 10/22/2013 9:08:00 PM
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Investing.com - " Oil futures continued trading lower during Wednesday's Asian, following a weak showing Tuesday at the hands of some disappointing data points.

On the New York Mercantile Exchange, light, sweet crude futures for December delivery lost 0.11% to USD98.19 per barrel in Asian trading Wednesday. The December contract settled lower by 1.38% at USD98.30 per barrel on Tuesday.

Oil was pressured after the U.S. Labor Department said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.

The previous month's figure was revised up to a gain of 193,000 from a previously reported increase of 169,000. July's figure was revised down to 89,000 from 104,000. The unemployment rate in the world's largest economy fell to 7.2% from 7.3%.

The jobs report came a day after the U.S. Energy Information Administration said in its weekly report on Monday that U.S. crude oil inventories rose by 4 million barrels in the week ended October 4, well above expectations for an increase of 2.2 million barrels.

Silver lining for oil bulls comes in the form of the fact that the jobs number was weak enough as to imply the Federal Reserve cannot even begin to consider tapering its USD85 billion-a-month quantitative easing effort until late in the first quarter of 2014.

Even then it is not guaranteed that the presumptive new Fed chair, Janet Yellen, will want to make one of her first acts as leader of the central bank tapering of U.S. easing efforts.

Elsewhere, Brazil award exploration rights in the Libra field to a group of international companies, including Royal Dutch Shell, Total and China's Cnooc.

Meanwhile, Brent crude futures for December delivery inched up 0.03% to USD110.03 per barrel on the ICE Futures Exchange.


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