|Analysis||Crude oil declined slightly on Monday continuing the previous week's decline marking bellow $76 a barrel.|
Prices slipped on Friday after the dollar has gained to the strongest level in a year versus a basket of major currencies after the release of the U.S. jobs report which beat forecasts showing that non-farm payrolls plunged by 11,000 in November, above estimates; marking the best record since December 2007, while unemployment rate has surprisingly retreated to 10.0% from 10.2%.
Despite the dollar's spike on Friday, oil declined slightly as stocks gained and hopes that the world's top crude consumer is recovering. Today, the dollar plunged to 75.60 from the opening at 75.71, according to the dollar index. However, oil and other commodities are still impacted by the dollar's strong rebound last week. On Friday, S&P GSCI slumped 5.16 points to 503.33 points and RJ/CRB Commodity edged down 2.68 points to 273.87 points.
In stock markets, Asian shares bounced, trailing gains in the U.S., after the stellar labor report. As of 03:50 p.m., the MSCI Asia Pacific Index advanced 0.5% to 120.71, while Nikkei Index closed at the highest level in 6 weeks at 10167.60 points.
Oil is currently traded at $75.57 recording a high of $76.05 and a low of $75.50, whereas the contract on Friday shed $0.99 closing at $75.47, while recording a high of $77.90 per barrel and a low of $74.85 per barrel.
Ali-al-Naimi, the Saudi oil Minister, mentioned that OPEC will not cut inventories in their coming meeting as the current level is satisfying for the oil cartel. Oil fluctuated in November in a tight range between a low of $72 and a high of $81 and it is expected to remain between these levels till the end of 2009.