Crude oil futures edge higher ahead of U.S. nonfarm payrolls

Shutterstock photo
Shutterstock photo

Shutterstock photo - - Crude oil futures edge higher on Friday, but gains were capped as growing expectations that the Federal Reserve could soon raise interest rates continued to support the U.S. dollar.

On the New York Mercantile Exchange,U.S. crude oil for delivery in October traded at $94.73 a barrel during European afternoon trade, up 0.29%.

Prices tumbled 1.14% on Thursday to settle at $94.45.

Futures were likely to find support at $93.06 a barrel, the low from September 3 and resistance at $95.91, the high from September 2.

The dollar remained supported by expectations that the Federal Reserve is growing closer to raising interest rates.

Investors were looking ahead to the upcoming U.S. employment report for further indications on the strength of the recovery in the labor market, a key factor in deciding the future path of monetary policy.

On Thursday, the ADP nonfarm payrolls report showed that the private sector added less jobs than expected in August.

Another report showed that the number of people who filed for unemployment assistance in the U.S. last week rose more than anticipated last week to 302,000.

A stronger U.S. dollar usually weighs on oil, as it makes dollar-priced commodities more expensive for holders of other currencies.

Elsewhere, on the ICE Futures Exchange, Brent oil for October edged up 0.09% to trade at $101.92 a barrel, with the spread between the Brent and crude contracts standing at $7.88 a barrel.

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