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Oil edges up as dollar slumps
again, traders await US payrolls data
Thomson
Financial
Friday, April 4, 2008
Oil recovered yesterday's losses as the dollar turned
lower against the euro, making dollar priced oil cheaper for holders
of foreign currency, and as players positioned themselves ahead
of this afternoon's key US payrolls report.
The report is expected to show the US economy cut about 50,000
jobs in March. However markets are nervous the figure could be
higher than this as data out yesterday showed jobless claims rose
to their highest in three years last week.
'Should we get a larger-than-expected decline in payrolls, the
dollar could weaken and energy prices could receive a boost in
the process,' said MF Global (NYSE:MF) analyst Ed Meir.
(Article continues below)
He added, however, that 'it is also possible that markets will
interpret a sharp drop as a sign that we are well on our way into
recession, in which case oil prices have more room to fall'.
At 9:46 a.m., New York's West Texas Intermediate crude for May
delivery was up 74 cents at $104.56 a barrel.
Brent crude for May delivery was up 69 cents at $103.21 a barrel.
Oil markets players are struggling of late to reconcile opposing
market forces. On the one hand the weak dollar is continuing to
underpin oil, while on the other hand fears over the demand outlook
are growing.
This is as data releases from the US continue to indicate the
world's largest oil consumer is teetering on the brink of recession,
meaning it might buy less oil going forward.
Full
article here.
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INFOWARS:
BECAUSE THERE'S A WAR ON FOR YOUR MIND
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