June 5, 2009 / 7:47 PM / 11 years ago

NYMEX-Crude ends down on jobs data doubts, dollar

 * U.S. job losses in May fewer then expected
 * U.S. unemployment rate jumps to 9.4 percent
 * Dollar rallies on jobs data, Wall Street up
 NEW YORK, June 5 (Reuters) - U.S. crude oil futures ended
lower in choppy trading on Friday, as misgivings about the
latest government jobs report undermined an early surge to a
seven-month high above $70 a barrel.
 The report showed that, while job losses were slowing, the
unemployment rate had hit the highest in almost 26 years.
 "So, no, it was not as bad as expected, but it was still
awful. The way we look at the world, that's at least a third of
a million workers who will not be commuting to work each day,
or planning business lunches or taking vacations," Peter
Beutel, president at Cameron Hanover in New Canaan,
Connecticut, said in a research note.
 However, the U.S. dollar rallied on the jobs data, and was
on track for its largest weekly gain in nearly two months
against a basket of currencies as the report raised more hopes
for an economic recovery. [USD/]
 A stronger dollar usually causes investors in commodities
traded on the currency, such as oil, to shift to alternative
assets.
 On Wall Street, the Dow industrials climbed on Wal-Mart's
plan to buy back more of its shares, but broader market gains
were muted by the jobs report. [.N]
 PRICES
 * On the New York Mercantile Exchange, July crude CLN9
settled down 37 cents, or 0.54 percent, at $68.44 a barrel,
after trading from $67.54 to $70.32, the highest front-month
intraday price since $70.46 was struck on Nov. 5.
 * NYMEX front-month prices were up $2.13, or 3.2 percent,
from a week ago and up for a third week in a row.
 * In London, July Brent crude LCON9 ended down 37 cents,
or 0.54 percent, at $68.34 a barrel, trading from $67.35 to
$69.91, the highest intraday price since Oct. 21's $73.29.
 * NYMEX July RBOB RBN9 settled down 0.75 cent, or 0.38
percent, at $1.9546 a gallon, trading from $1.9335 to $1.9945,
the highest intraday since Oct. 14's $1.9990.
 * NYMEX July heating oil HON9 ended down 1.30 cents, or
0.78 percent, at $1.7701 a gallon, trading from $1.7546 to
$1.8139, the highest intraday price since Nov. 24's $1.8302.
 * The July/July RBOB crack spread <0#RB-CL=R> ended at
$13.65, up from $13.60 on Thursday. The July/July heating oil
crack spread <0#CL-HO=R> ended at $5.90 down from $6.12 on
Thursday.
 * The spread between the current front month and the
five-year forward crude contract CLc61 ended at $15.95,
widening from $15.18 on Thursday. The July 2014 contract
settled at $84.39, up 40 cents, or 0.48 percent.
 TECHNICALS
 NYMEX crude 10-day/20-day moving average: $65.29/$61.85
 Technical support/resistance:
 NYMEX crude: $65.00/$70.00
 NYMEX heating oil: $1.7180/$1.8410
 NYMEX RBOB: $1.8850/$2.00
 For a report on technicals click [ID:nL5544853]
 MARKET NEWS
 * U.S. employers cut 345,000 jobs in May, the fewest since
September and far less than forecast, according to the Labor
Department. However, the unemployment rate rose to 9.4 percent,
the highest since a matching rate in July 1983, from 8.9
percent in April, the department said. [ID:nN04486858]
 * Analysts polled by Reuters had forecast nonfarm payrolls
dropping by 520,000 in May. The unemployment rate had been
forecast to rise only to 9.2 percent.
 * White House economic adviser Christina Romer said
payrolls data was consistent with a trend of moderating job
losses, but the unemployment rate would stay high for a while.
[ID:nN05280464]
 * China's top refineries plan to raise their crude oil
processing in June to record levels, after some plants
completed maintenance, encouraged by a recent fuel price
increase and falling fuel stocks, according to a Reuters poll.
[ID:nPEK729]
 (Reporting by Gene Ramos and Robert Gibbons; Editing by Walter
Bagley)


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