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Oil prices fall after US payrolls data


Agence France-Presse
First Posted 10:52:00 07/03/2010

Filed Under: Oil & Gas - Downstream activities, Unemployment, Economy and Business and Finance, Energy

NEW YORK ? World oil prices fell on Friday after poor jobs data from the United States ? the world's biggest energy-consuming nation.

New York's main contract, light sweet crude for August delivery, fell 81 cents to $72.14 by Friday's close.

In London, Brent North Sea crude, also for August delivery, lost 69 cents to settle at $72.38.

Ahead of a US public holiday on Monday, oil prices fell as traders digested a mixed June employment report showing the economy shed more jobs than expected and a surprise dip in the unemployment rate.

"June's employment report supports other evidence showing that the economy has lost some momentum in recent months, but it is not yet collapsing," said economist Paul Dales at British consultancy Capital Economics.

The American economy shed 125,000 jobs in June, after adding an upwardly revised 433,000 non-farm payrolls in May, official data showed. Most analysts had expected a loss of 100,000 jobs.

The unemployment rate fell to 9.5 percent from 9.7 percent, instead of the anticipated rise to 9.8 percent, as more than half a million workers exited the workforce.

"What's really driving this market is further worries about the economic outlook in view of the poor economic indicators this week from both China and the US," said Adam Sieminski of Deutsche Bank.

China said Friday its red-hot economy had expanded by 9.1 percent in 2009, upwardly revised from an earlier figure of 8.7 percent.

But the revision comes ahead of second-quarter data due this month that is expected to show the economy of the world's second-biggest energy consumer slowed in the three months to June.

Oil prices have slumped more than eight percent this week as weak data has sparked widespread fears about the strength of the global economic recovery.

"The start to the new quarter saw more pain for the oil market," said VTB Capital analyst Andrey Kryuchenkov.



Copyright 2013 Agence France-Presse. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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