Crude prices jump on Syria concerns, weak U.S. jobs report bolsters
Published Sep 06, 2013 12:54PM ET
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD110.38 a barrel during U.S. trading, up 1.85%.
The October contract settled down 1.08% at USD104.76 a barrel on Thursday.
The commodity hit a session low of USD108.13 and a high of USD110.34.
The U.S. earlier continued to press its case for military strikes against Syria for its alleged use of chemical weapons, though Russian countered on Friday that it would stand by its ally Damascus in the event of an attack from the West.
While not a major producer of crude, Syria is an ally of oil-rich Iran as well as Russia, and fears persist a U.S. military strike could engulf the entire Middle East and even beyond and threaten global supply.
Elsewhere, U.S. Labor Department reported earlier that the economy added 169,000 jobs in August, less than market calls for a 180,000 increase.
July 's figure was revised down to 104,000 from 162,000, while June's figure was revised down to 172,000 from 188,000.
The private sector added 152,000 jobs in August, well beneath expectations for a 180,000 rise
The U.S. unemployment rate fell to 7.3% in August, from 7.4% in July, as more people left the workforce. Analysts were expecting the unemployment rate to remain unchanged last month.
The data fueled sentiments that the Federal Reserve may hold off announcing plans to begin winding down its USD85 billion in monthly bond purchases at its Sept. 17-18 policy meeting.
Such stimulus tools weaken the greenback to spur recovery, which in turn bolster oil prices by making the commodity an attractive buy in dollar-denominated exchanges.
On the ICE Futures Exchange, Brent oil futures for October delivery were up 0.78% at USD116.16 a barrel, up USD5.78 from its U.S. counterpart.
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Written By: Investing.com
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