WTI approaches lowest in three weeks Prime News

West Texas Intermediate neared a three day low today following the release of data that detailed a lower than expected growth in the labor market of the US, the largest consumer of oil in the world.

Futures for the American crude benchmark with a delivery date in October was mostly unchanged late morning Sydney time with a price per barrel of $93.20, 11 cents below the previous close. It declined last week by 2.8%, or $1.16, to arrive at its lowest close since September 2 of $92.29. Trading volume was 33% less than the 100 day average. Prices for WTI have so far dropped this year by 5.3%.

A recent report from the US Labor Department showed that employers in the country created the least amount of jobs for 2014 at only 142,000 during the month of August to break a multi month streak of consecutive improvements of over 200,000 . In the previous month of July, 210,000 new jobs were created. The data fell far below the expectations of analysts surveyed through a Bloomberg News survey which had a median prediction of a 230,000 improvement.

In China, the second largest oil user, the growth of exports is projected to fall from July’s 14.5% to around 9%, according to economists polled by Bloomberg News. Official statistics from the country’s government is expected to be released today.

Chief strategist Ric Spoone from Sydney’s CMC Markets says that, “We have now seen two months of more moderate jobs growth. It possibly changes the attitudes toward what’s been going on in the U.S. economy. The Chinese data will be an area of focus, particularly given the signs of ongoing weakness we’ve seen in the property market.”

Brent, the European benchmark, with a delivery date in October fell to a price per barrel of $100.52 after losing 29 cents from its value. It held a premium over WTI of $7.32 after closing last week at $7.53 in London’s ICE Futures Europe exchange.

The material has been provided by InstaForex Company - www.instaforex.com



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