Oil prices dropped Friday, pulled lower by a disappointing US employment report.
NEW YORK (AFP) – Oil prices dropped Friday, pulled lower by a disappointing US employment report that suggested weaker economic growth.
US benchmark West Texas Intermediate (WTI) for October delivery slid $1.16 to $93.29 a barrel.
In London, Brent North Sea crude for October dropped $1.01 to $100.82 per barrel.
Hopes that the US would turn in a seventh straight month of strong jobs generation were dashed when August’s number came in at just 142,000 net new positions, 80,000 less than expected.
The Labor Department data supported the view that the economy is still struggling to pick up speed, and that wages remain very flat, holding back consumer spending.
That came on the back of poor data for the eurozone that has depressed the outlook for fuel consumption there.
“The jobs data has raised questions about what was probably one of the strong points in the economic outlook that has been helping support oil prices,” said Gene McGillian of Tradition Energy.
“It kind of raised the concern that we have more than ample supply and weak fuel demand.”
Sentiment was also weighed down by continued doubts about a ceasefire plan between Ukraine and pro-Russian rebels, and President Barack Obama’s warning that the US might still go ahead with fresh sanctions on Moscow next week.
“The market is taking a wait-and-see approach on whether it (the ceasefire) is going to hold,” said McGillian.