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Crude Gains on US NFP, Heads to Weekly Losses on US Inventories

Summary:
Crude oil rose a bit today but was still heading to weekly losses. Crude managed to carve out gains with help of US nonfarm payrolls. While the solid employment figure hurt gold, it also helped commodities linked to growth. Baker Hughes reported that US drilling firms increased the number of oil rigs by 2 last week. But that was not nearly enough to offset the previous week’s slump by 20 rigs, which put the total number of rigs to the lowest level in more than a year. The real culprit responsible for this week’s losses of the commodity was the US oil inventories data. A report from the Energy Information Administration showed an increase of the stockpiles by as much as 9.9 million barrels last week, which was far above the expected increase by 1.3 million barrels. Contract for delivery

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Crude oil rose a bit today but was still heading to weekly losses. Crude managed to carve out gains with help of US nonfarm payrolls. While the solid employment figure hurt gold, it also helped commodities linked to growth.

Baker Hughes reported that US drilling firms increased the number of oil rigs by 2 last week. But that was not nearly enough to offset the previous week’s slump by 20 rigs, which put the total number of rigs to the lowest level in more than a year.

The real culprit responsible for this week’s losses of the commodity was the US oil inventories data. A report from the Energy Information Administration showed an increase of the stockpiles by as much as 9.9 million barrels last week, which was far above the expected increase by 1.3 million barrels.

Contract for delivery of WTI crude oil in June advanced 0.29% to $61.99 per barrel as of 19:16 GMT on NYMEX today. July contract for Brent crude gained 0.25% to $70.93 per barrel on ICE.


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Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

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