Oil Futures Tumble To Six-Month Low
ICM Brokers | Aug 04, 2014 02:58AM ET
Crude Oil
West Texas Intermediate oil futures tumbled to a six-month low on Friday, as concerns over U.S. demand for oil and fuel products like gasoline drove prices lower. The U.S. Department of Labor said Friday that non-farm payrolls rose by a seasonally adjusted 209,000 in July, below expectations for an increase of 233,000. The unemployment rate ticked up to 6.2% last month from 6.1% in June. Analysts had expected the jobless rate to hold steady at 6.1% in July. The disappointing jobs report dampened optimism over the strength of the labor market and reduced expectations that the Federal Reserve will begin to raise rates sooner than previously thought. Weekly supply data showed that total motor gasoline inventories in the U.S. increased by 0.4 million barrels last week to 218.2 million, the highest level in four months. The ongoing buildup in gasoline stocks during the peak summer driving season in the U.S. was seen as bearish for oil prices, amid speculation of slowing demand.
Gold
Gold futures bounced off a six-week low to end Friday’s session almost 1% higher, following the release of weaker than expected U.S. nonfarm payrolls data for July. Gold regained strength after the U.S. Department of Labor said non-farm payrolls rose by a seasonally adjusted 209,000 in July, below expectations for an increase of 233,000. The unemployment rate ticked up to 6.2% last month from 6.1% in June. Analysts had expected the jobless rate to hold steady at 6.1% in July. The disappointing jobs report dampened optimism over the strength of the labor market and reduced expectations that the Federal Reserve will begin to raise rates sooner than previously thought. Gold has been under heavy selling pressure in recent weeks as an improving U.S. economy fuelled speculation that the Fed will hike interest rates sooner than expected, which would reduce the need for gold for use as a hedge against loose monetary policy.
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