|News||Tight ranged trading ahead of jobs figures|
|Analysis||Oil was trading within a tight range early this morning as investors focus upon the infamous US jobs report due later today which will detail the coming period for the US economy and financial markets.|
Crude oil futures for October settlement opened today at $74.93 recording the highest at $74.97 and the lowest at $74.54 and currently hovering around $74.77 down by 0.33%. Yesterday crude settled higher by 1.50% at $75.02.
The economic status is the main influence in the market at this period, especially with downbeat expectations which are weighing negativity on demand prospects for crude and keeping the bias to the downside.
US equities yesterday closed with gains after somewhat good data and less sever jobs status ahead of today’s nonfarm payrolls. The DJIA ended higher by 0.49% at 10320.10 and today Asian shares followed with Nikkei higher by 0.6% at 9114.13.
Crude is expected to continue trading with volatility ahead of the strongly anticipated jobs report. The data are expected to show the economy lost another 105 thousand jobs last month and unemployment to have increased a notch to 9.6%.
The volatility is expected to continue today amid the demand for safety and shunning risky assets opposed to the weaker dollar which will support its denominated assets. Yet in general a pessimistic gloomy outlook will be bearish on crude while eased fears over the outlook and a less sever slump will support equities and commodities on unwinding of pessimism and that is the upside scenario for crude.