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Crude Declines Before U.S. Payroll Report as Dollar Recovers
2010-10-08 09:53:17.44 GMT
By Rachel Graham
Oct. 8 (Bloomberg) -- Oil declined as the dollar advanced
against the euro, recovering from yesterday's nine-month low,
before a report today that may show unemployment in the U.S.
increased last month.
Futures headed for their first weekly decline in three
weeks. A government report today may show the U.S. jobless rate
rose for a second consecutive month in September, according to a
Bloomberg News survey.
"The dollar has strengthened since early morning and this
is keeping the downtrend in oil going," said Alexander Ridgers,
head of commodities at London-based CMC Markets, which handles
more than $150 million a day in U.S. crude contracts.
Crude for November delivery fell as much as $1.05, or 1.3
percent, to $80.62 a barrel in electronic trading on the New
York Mercantile Exchange and was at $80.63 as of 10:47 a.m.
London time. The contract has fallen 1.2 percent this week.
Brent crude for November settlement fell 73 cents to $82.70 a
barrel on the ICE Futures Europe exchange in London.
The dollar gained 0.2 percent to trade at $1.3898 against
the euro. The U.S. currency slumped yesterday to $1.4029, the
weakest since Jan. 28. Investors tend to buy commodities when
the dollar falls.
The U.S. Labor Department may say today the September
jobless rate rose to 9.7 percent from 9.6 percent in August,
according to the median estimate of 83 economists surveyed by
Bloomberg News. Private payrolls in the U.S. probably increased
75,000 in September after slowing to a 67,000 gain in August.
Overall nonfarm payrolls may have declined by 5,000.
"If the jobs figure were to be negative, that might have
some impact on oil, pushing it lower," said Gavin Wendt, a
director at Mine Life Resources Ltd. in Sydney.
French Strike
A strike at the Fos and Lavera oil terminals at the French
port of Marseille left 19 crude-oil tankers and 26 oil-product
tankers waiting to load or discharge, Inchcape Shipping Services
said in a notice on its website today.
At least four French refineries may be forced to start
shutting down operations this weekend. The strike may endanger
local fuel supplies as early as Oct. 18, said Jean-Louis
Schilansky, head of refiners' organization Union Francaise des
Industries Petrolieres, in a telephone interview today.
Crude oil may decline next week as U.S. inventories
increase and fuel consumption drops, a Bloomberg News survey
showed. Seventeen of 33 analysts, or 52 percent, forecast crude
oil will decline through Oct. 15. Twelve respondents, or 36
percent, predicted an increase, and four estimated prices will
be little changed. Last week, 42 percent said crude would climb.
Daily exports of North Sea Brent crude are scheduled to
rise 15 percent in November from this month, according to a
trader with access to the loading schedule. Exports will average
160,000 barrels a day next month compared with 139,032 barrels a
day in October.
For Related News and Information:
Top energy, oil stories ETOP <GO> and OTOP <GO>
News on oil inventories TNI OIL INV <GO>
News on oil markets NI OILMARKET <GO>
OPEC news: NI OPEC <GO>
Global Energy Statistics ENST <GO>
--With assistance from Tara Patel in Paris and Mark Shenk in New
York. Editors: John Buckley, Alex Devine
To contact the reporter on this story:
Rachel Graham in London +44-20-7073-3184 or
rgraham13@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
