Brent drops toward $59 as dollar firms on U.S. jobs data

SINGAPORE - Brent crude fell toward $59 a barrel on Monday as a promising U.S. jobs report pushed the dollar up, offsetting geopolitical tensions and the threat of output cuts in Libya and Iraq.

The dollar hit a more than 11-year high against a basket of currencies after data showed the U.S. unemployment rate fell to the lowest since May 2008 in February, making commodities priced in the greenback costlier for holders of other currencies

Brent eased 43 cents to $59.30 by 0445 GMT, after dropping 75 cents in the previous session. It fell 4.6 percent last week in its biggest decline since the week ended Jan. 9.

U.S. crude was down 27 cents at $49.34. It closed down $1.15 on Friday to complete a third week of declines.

Goldman Sachs  said in a note that oil prices would reverse recent gains on rising global inventories, with U.S. crude expected to drop to around $40 a barrel.

Oil prices rose by almost a third between January and February on the back of Middle East supply disruptions, strong winter demand and high refinery margins.

But the focus is now on the dollar, analysts said.

"The U.S. dollar is continuing to strengthen. In the short-term it's more about the dollar than anything else," said Ben LeBrun, market analyst at Sydney's OptionsXpress.

U.S. economic data to be released on Tuesday could lead to a further strengthening of the U.S. dollar which would be negative for commodities including oil, said LeBrun.

He said geopolitical issues in North Africa and the Middle East "are all playing second fiddle to the U.S. dollar".

Goldman said in its note that "absent further unexpected OPEC disruptions, we expect Brent oil prices and timespreads to reverse their recent strength".

Members of the Organisation of the Petroleum Exporting Countries (OPEC) should not cut output to "subsidize" higher-cost shale, OPEC Secretary-General Abdullah al-Badri has said.

In Libya, up to 10 foreign workers are missing in the latest attack on the country's oil fields by Islamist militants and there is a possibility they have been taken hostage, Czech and Libyan officials said on Saturday.

Brent should trade within a range of $55.36-$63.04 this week, said Singapore's Phillip Futures in a note on Monday.

U.S. crude should trade between $48.45-$55.02 although prices could move sharply upwards if the U.S. refinery strikes end this week, Phillip Futures said.

source: interaksyon.com

Oil prices rise ahead of US jobs report

SINGAPORE, October 3, 2014 (AFP) - The cost of oil rose in Asia Friday ahead of the latest US jobs report and after hitting multi-month lows a day earlier in response to key exporter Saudi Arabia cutting prices.

US benchmark West Texas Intermediate (WTI) for November delivery rose 16 cents to $91.17 while Brent crude for November gained 11 cents to $93.53 in mid-morning trade.

Singapore's United Overseas Bank (UOB) said investors are keenly eyeing the release of the September US jobs report later Friday.

"For the September non-farm payrolls, markets are looking at a job creation of 215,000, up from 142,000 in August, while unemployment is expected to stay unchanged at 6.1 percent," UOB said.

US jobs figures are closely watched by crude investors for clues on the state of economic recovery and demand in the world's top oil consumer.

The gains on Friday come after WTI prices tumbled below $90 in New York intra-day trade following Riyadh's announcement of lower prices for the fourth straight month.

WTI retreated to $88.18 -- a level last seen on April 23, 2013 -- before recovering to $91.01.

In London, Brent dropped to $91.55 a barrel, last hit in June 2012, but later rebounded to $93.42 at the close.

Analysts say the move by Saudi Arabia, OPEC's biggest producer, signals its focus on maintaining market share amid a broader increase in production by rivals.

source: interaksyon.com

Petroleum prices rise on strong US, China manufacturing data

SINGAPORE - Oil prices rose in Asian trade Tuesday on strong manufacturing data from top global energy guzzlers the United States and China, analysts said.

US benchmark, West Texas Intermediate (WTI) for delivery in July gained 15 cents to $102.62 a barrel while Brent North Sea crude for July was up 11 cents to $108.94 in afternoon trading.

Analysts said oil prices were tracking gains on Wall Street Monday after the Institute of Supply Management said its purchasing managers index of US manufacturing activity rose in May to 55.4 from 54.9 in April.

China's official purchasing managers index (PMI) of manufacturing activity reached 50.8 in May, the government said Sunday, a five-month high, up from 50.4 in March.

PMI data is a closely watched indicator of the health of a country's economy, and a reading above 50 indicates growth.

"The oil market at the moment is focused on the manufacturing data out of the US and China," Michael McCarthy, chief market strategist at CMC Markets in Sydney, told AFP.

"But we are seeing some of the risk premium associated with Ukraine coming off as the crisis continues to drag on with new developments having little impact," McCarthy said. "That is dampening any upside factor on oil."

Government forces and pro-Russian insurgents have been embroiled in skirmishes for weeks in eastern Ukraine, but the fighting has so far not expanded into a full-fledged civil war in the ex-Soviet state.

The West has accused Russia of fomenting unrest in its neighbour since the ousting of pro-Kremlin president Viktor Yanukovych in February. Moscow denies the allegation.

Investors fear a full-blown conflict in Ukraine, a conduit for a quarter of European gas imports from Russia, will disrupt supplies and send energy prices soaring.

source: interaksyon.com