|News||Crude oil starts the week with losses|
|Analysis||Crude oil started the week on the soft side, moving to the downside, extending last week’s losses on mounting concerns over the health of the global economy and slowing U.S. recovery.|
Crude oil Futures for July settlement opened today at $100.42 a barrel, recording the high of $100.66 and the low of $99.84 a barrel and currently hovering around $100.25 per barrel. Crude is still trending lower from last week’s closing of $100.49 per barrel where it recovered by closing from the intraday lows reached on Friday’s session of $98.12 a barrel following the weak U.S. jobs figures.
Crude moved to the downside alongside the decline seen in Asian equities as the market reacts on the U.S. jobs report. On Friday the jobs report showed frail job gains and a rally in unemployment to 9.1%, the highest this year, raising more concern over the outlook for the recovery and accordingly demand prospects of crude.
Oil’s decline was marginally held by the weak dollar which continued to trend lower on the back of the waning recovery and expectations for the Feds to keep their loose monetary policy. The dollar index that tracks greenback’s performance continued to build on last week’s losses and moved to the downside to a one-month low of 73.63 and currently around 73.68 from opening levels for 73.80.
The prevailing fears over the outlook for the recovery and the status of the recovery in the United States offset the focus from the rising tension in the Middle East and fears over disturbed output. The uncertainty and bearishness come ahead of a scheduled OPEC meeting this week on June 08 as they are expected to keep production quotas unchanged.
Today we do not have major fundamentals queued for release as the focus remains on the status for the fragile recovery and the debt crisis in Europe, where the concerns are marginally lower with expectations that the EU maintains its commitment with a new bailout for Greece.