Sunday, July 4, 2010
Crude futures fluctuate following payrolls
Directly following the relatively disappointing non-farm payrolls release, crude oil dropped to a new intraday low of $71.40 before quickly paring losses and consolidating above. Currently the crude contract for August delivery trades at $72.54 where it is near even since open.
Despite the non-farm payrolls figure coming out below expectations in June as it dropped by 125K, the US unemployment rate saw an unexpected fall to 9.5% which is the lowest it’s been since July, 2009. What’s more, the US economy shed 225K temporary census workers while adding a modest 83K in private sector payrolls. Crude oil briefly sunk on the release as investors were disappointed in the total payroll figure but the better unemployment rate helps to soften the blow.