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Crude oil futures - Weekly review: May 30-June 3

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Forex Pros - Crude oil prices trimmed losses on Friday, rebounding from a two-week low as a broadly weaker U.S. dollar and speculation that the Organization of Petroleum Exporting Countries would maintain its current output quota offset concerns over a slowdown in demand from the U.S.

On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded at USD100.56 a barrel by close of trade on Friday, easing down 0.2% on the week.

It earlier fell to USD98.16 a barrel, the lowest price since May 24, after official data showed that nonfarm payrolls rose by 54K in May, the smallest jobs gain in nearly a year and significantly below expectations for an increase of 169K.

The unemployment rate unexpectedly rose to 9.1% from 9.0% in April, the highest level in five months.

But oil prices recovered as weakness in the U.S. dollar boosted the appeal of dollar-denominated commodities. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, declined 0.78% to trade at a four-week low of 73.77.

Markets were also awaiting next week's meeting in Vienna of the Organization of the Petroleum Exporting Countries.

Qatar's oil minister Mohammed bin Saleh al-Sada said on Friday that there was "no noticeable urgency" for OPEC to raise its quota when it meets on June 8.

The oil market is in a "healthy situation," Mr. al-Sada said earlier Thursday at a news conference in Ras Laffan, Qatar. Supply, demand and prices are "getting stable," he added.

The comments echoed remarks from Algeria's energy minister, Youcef Yousfi, who said that he did not expect OPEC to raise output at its meeting next week.

On Wednesday, crude prices tumbled nearly 3%, after data showed that manufacturing activity in the U.S. slumped to a one-year low in May, while a separate report showed that China's purchasing managers index declined to a 10-month low in April.

The U.S. is the world's largest crude consumer, while China is the second largest.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for July delivery traded at USD116.10 a barrel by close of trade on Friday. The Brent contract climbed 1% on the week and was up USD15.54 on its U.S. counterpart.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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