NEW YORK, July 2 (Reuters) - U.S. crude oil futures fell
sharply on Thursday after government data showed job losses in
June were more than analysts had expected, highlighting an
economy struggling to recover from recession.
'It shows an economy still in distress that can only be echoed in earnings reports after the holidays,' said Mike Fitzpatrick, vice president at MF Global in New York.
U.S. employers cut 467,000 jobs in June, while the unemployment rate rose to 9.5 percent, the Labor Department said on Thursday.
The June job losses were more than 100,000 greater than the 363,000 consensus of Wall Street economists polled by Reuters and broke a four-month trend of moderation in job losses.
The number of U.S. workers filing new claims for jobless benefits fell by 16,000 last week, and the number staying on the rolls after collecting an initial week of aid also fell, the government said in a report.
Ahead of the data, crude futures had been under pressure after Wednesday's government oil inventory report showed sharp rises in gasoline and distillate fuel supplies.
The U.S. Energy Information Administration will issue its natural gas storage report at 10:30 a.m. EDT (1430 GMT) on Thursday.
PRICES
* On the New York Mercantile Exchange at 10:07 a.m EDT (1407 GMT), August crude was down $2.58, or 3.72 percent, at $66.73 a barrel, trading from $66.62 to $69.74.
Tuesday's $73.38 peak was the highest intraday front-month crude oil price since Oct. 21, when crude hit $75.69.
* In London, August Brent crude fell $2.21, or 3.21 percent, to $66.58 a barrel, trading from $66.37 to $69.19.
* NYMEX August RBOB fell 6.94 cents, or 3.73 percent, to $1.7896 a gallon, trading from $1.7822 to $1.8696.
* NYMEX August heating oil fell 6.14 cents, or 3.48 percent, to $1.7043 a gallon, trading from $1.7002 to $1.77.
* The August/August RBOB crack spread was at $8.24, after ending at $8.77 on Wednesday. The August/August heating oil crack spread was at $4.74, after ending at $4.85 on Wednesday.
* The spread between the current front month and the five-year forward crude contract was at $16.99, based on the August 2014 contract Wednesday settlement at $83.72. The spread ended Wednesday at $14.41.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $69.27/$69.94
Technical support/resistance:
NYMEX crude: $66.37/$71.85
NYMEX heating oil: $1.7293/$1.8024
NYMEX RBOB: $1.8154/$1.9026
For a full report on technicals, click on
MARKET NEWS
* The dollar extended gains versus the euro and fell against the yen on Thursday after the report of the larger-than-expected drop in U.S. non-farm payrolls in June raised concerns about economic recovery.
* China's crude oil stocks were at record high levels at the end of May, but the gains narrowed compared with past months, as hefty oil imports were largely consumed because of refiners' record operational levels.
* Russian oil output edged up in June, while natural gas production continued its steepest decline in a decade because of low demand in Russia and Europe, energy ministry data showed on Thursday.
* London-based oil broker PVM Oil Futures Ltd is investigating unauthorized trades that left it with losses of almost $10 million, the company said Thursday.
(Reporting by Robert Gibbons; Editing by Walter Bagley) Keywords: MARKETS ENERGY NYMEX (robert.gibbons@thomsonreuters.com; + 1 646 223 6059; Reuters Messaging: robert.gibbons.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'It shows an economy still in distress that can only be echoed in earnings reports after the holidays,' said Mike Fitzpatrick, vice president at MF Global in New York.
U.S. employers cut 467,000 jobs in June, while the unemployment rate rose to 9.5 percent, the Labor Department said on Thursday.
The June job losses were more than 100,000 greater than the 363,000 consensus of Wall Street economists polled by Reuters and broke a four-month trend of moderation in job losses.
The number of U.S. workers filing new claims for jobless benefits fell by 16,000 last week, and the number staying on the rolls after collecting an initial week of aid also fell, the government said in a report.
Ahead of the data, crude futures had been under pressure after Wednesday's government oil inventory report showed sharp rises in gasoline and distillate fuel supplies.
The U.S. Energy Information Administration will issue its natural gas storage report at 10:30 a.m. EDT (1430 GMT) on Thursday.
PRICES
* On the New York Mercantile Exchange at 10:07 a.m EDT (1407 GMT), August crude was down $2.58, or 3.72 percent, at $66.73 a barrel, trading from $66.62 to $69.74.
Tuesday's $73.38 peak was the highest intraday front-month crude oil price since Oct. 21, when crude hit $75.69.
* In London, August Brent crude fell $2.21, or 3.21 percent, to $66.58 a barrel, trading from $66.37 to $69.19.
* NYMEX August RBOB fell 6.94 cents, or 3.73 percent, to $1.7896 a gallon, trading from $1.7822 to $1.8696.
* NYMEX August heating oil fell 6.14 cents, or 3.48 percent, to $1.7043 a gallon, trading from $1.7002 to $1.77.
* The August/August RBOB crack spread was at $8.24, after ending at $8.77 on Wednesday. The August/August heating oil crack spread was at $4.74, after ending at $4.85 on Wednesday.
* The spread between the current front month and the five-year forward crude contract was at $16.99, based on the August 2014 contract Wednesday settlement at $83.72. The spread ended Wednesday at $14.41.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $69.27/$69.94
Technical support/resistance:
NYMEX crude: $66.37/$71.85
NYMEX heating oil: $1.7293/$1.8024
NYMEX RBOB: $1.8154/$1.9026
For a full report on technicals, click on
MARKET NEWS
* The dollar extended gains versus the euro and fell against the yen on Thursday after the report of the larger-than-expected drop in U.S. non-farm payrolls in June raised concerns about economic recovery.
* China's crude oil stocks were at record high levels at the end of May, but the gains narrowed compared with past months, as hefty oil imports were largely consumed because of refiners' record operational levels.
* Russian oil output edged up in June, while natural gas production continued its steepest decline in a decade because of low demand in Russia and Europe, energy ministry data showed on Thursday.
* London-based oil broker PVM Oil Futures Ltd is investigating unauthorized trades that left it with losses of almost $10 million, the company said Thursday.
(Reporting by Robert Gibbons; Editing by Walter Bagley) Keywords: MARKETS ENERGY NYMEX (robert.gibbons@thomsonreuters.com; + 1 646 223 6059; Reuters Messaging: robert.gibbons.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
