Crude prices plunged so far as today's US jobs report came out depressing, having the jobless rate for August being worse than the market forecasts as it climbed up to 9.7% from a prior reading of 9.4%, which is in fact the highest level since 1983, forecasting that the consumer spending and accordingly the demand on energy will remain weak throughout the top oil consumer.
Furthermore, as a result of these fears that spread worries concerning the current economic conjuncture of the world's largest economy, traders were encouraged to target the low-yielding dollar as a refuge asset, corroding as a result the appeal of the dollar-priced commodities, as the gold and the black gold, since the green Benjamin gained momentum.
Moreover, we should not forget that this week's EIA report showed that the U.S. commercial crude oil inventories decreased by 0.4 million barrels, which is worse than the forecasted decline of 0.8 million of barrels but better than the prior week in which the US oil inventories rose by 0.2 million of barrels, indicating once more that the oil consumption remain unstable and weak despite signs of a slight enhancement.
Consequently and as a result of the current uncertainties and sentiments of glumness, crude prices opened at $68.19 a barrel recording a high $69.70 per barrel and a low of $67.12 per barrel with a slight 0.33 shed witnessed so far within the oil contract.
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