Crude oil futures declined during the Asian trading hours Monday after surging the most in a month in the previous session on upbeat U.S. jobs data.
Light sweet crude for September delivery declined 0.24 percent or 22 cents to $91.18 a barrel in electronic trading on the New York Mercantile Exchange during the Asian trading hours while Brent crude oil futures for September delivery fell 0.23 percent or 25 cents to $108.69 a barrel on the ICE futures exchange in London.
Oil futures rallied Friday after the U.S. Labor Dept. reported that 160,000 jobs were added in July, far better than economists' estimate of 95,000 to 100,000 jobs, eased fears that the strength of the economic recovery in the world's largest oil consumer was losing steam.
Meanwhile, hopes for of further stimulus measures by the euro zone to support growth also added to the sentiment. The ECB's strong tone in recent days, and its President Mario Draghi's comments at a press conference in Frankfurt, suggests that the central bank will prepare something in coordination with the governments in the coming weeks to boost the faltering euro zone economy.
"Prices did raise quite a lot so it's probably profit-taking going on. There is a greater degree of optimism in commodities surrounding the euro zone than 2-3 weeks ago. We are still awaiting details regarding what Draghi meant by he'll do anything to maintain the euro," Michael Creed, an economist at the National Australia Bank, told Reuters.
Light sweet crude for September delivery surged 4.9 percent or $4.27 Friday, the most since June 29, and settled at $91.40 a barrel on the New York Mercantile Exchange. Brent crude oil rose 2.9 percent or $3.04 to settle at $108.94 a barrel.