* U.S. jobs data aids biggest weekly Brent gains since July
* CRB has biggest weekly advance since September
* Copper, gold down on fears Fed may rethink its stimulus
By Barani Krishnan
NEW YORK, June 7 Oil jumped on Friday for its
largest weekly gain since mid-2012 while a broad commodities
gauge registered its biggest weekly gain since September after
the U.S. economy added 175,000 jobs in May.
Copper and gold fell on fears the jobs data was strong
enough for the Federal Reserve to begin to scale back stimulus
efforts sooner than expected.
The 19-commodity Thomson Reuters-Jefferies CRB index
was up 0.2 percent for Friday and rose 2 percent for
the week, the highest since September.
North Sea Brent crude oil rose nearly 1 percent to
settle at $104.56 a barrel. Brent's 4.3 percent weekly gain was
the biggest since July.
U.S. crude oil rose 1.3 percent, the biggest gain in
six weeks, and advanced 4.5 percent for the week to close at
$96.03 per barrel.
"Oil is taking a cue from the equity market, which obviously
liked the employment data," said John Kilduff, a partner at
Again Capital LLC in New York.
"The upside surprise versus expectation is signaling further
economic improvement and energy demand."
Wall Street viewed the U.S. jobs data as showing moderate
growth in the labor market but not enough forward momentum for
the Fed to put the brakes on its bond-buying program in the near
All three major U.S. stock indexes rose more than 1 percent.
COPPER, GOLD DOWN
However, copper prices fell as investors in the base metal
thought the step-up in U.S. hiring would cause the Fed to begin
to abate its stimulus.
Three-month copper on the London Metal Exchange
ended down 1.4 percent at $7,230 a tonne, having earlier hit a
one-week low of $7,221. Copper is down nearly 4 percent so far
this quarter, and some 8.5 percent this year.
The base metal was also affected by concerns about demand
from China, the largest consumer for copper.
A Reuters poll showed growth in China investment and factory
output probably remained listless in May on soft domestic
The spot price of gold fell more than 2 percent to
around $1,383 an ounce for its biggest one-day drop in over
three weeks as investors in bullion saw the jobs data reducing
hopes of prolonged stimulus, which weighed on gold's
The dollar rose, weighing on some commodities denominated in
the U.S. currency. Arabica coffee hit the lowest level
since September 2009.
Supply-demand fundamentals helped some commodities to post
gains, with soybean futures rising on worries that the wet
weather that has stalled planting of the U.S. crop could reduce
the size of the autumn harvest.
(Editing by Kenneth Barry)