Crude Oil Ends Lower After Jobs Data

(RTTNews) - U.S. crude oil pared much of the losses but still ended lower for a fifth straight session Friday, on demand growth concerns after some disappointing economic data from the U.S. with employment rising less than expected in July, even as unemployment increased.

Nonetheless, with employment in the U.S. rising less than expected in July and unemployment increasing, the report raised investor hopes that the Federal Reserve may go slow on withdrawing its monthly bond-buying program.

Investors also continued to monitor the developments in Ukraine and Israel closely. According to reports, Israeli forces and Hamas were engaged in exchange of fire, barely hours after the ceasefire took effect.

Among other economic news, a report from the U.S. Commerce Department showed personal income and spending to have increased in line with economist estimates in the month of June. Meanwhile, activity in the U.S. manufacturing sector expanded at a notably faster rate in July, with the index of activity climbing to a three-year high, a report from the Institute for Supply Management showed Friday.

U.S. construction spending unexpectedly saw a sharp drop in June, with spending on public construction indicating a substantial decrease, a Commerce Department report showed Friday.

Light Sweet Crude Oil futures for September delivery, the most actively traded contract, dropped $0.29 or 0.3 percent to close at $97.88 a barrel on the New York Mercantile Exchange Friday.

Crude prices for September delivery scaled a high of $98.10 a barrel intraday and a low of $97.09.

On Thursday, crude oil futures plummeted after some disappointing economic data with a report showing slower growth of manufacturing activity in the Chicago area and a notable jump in jobless claims.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.28 on Friday, down from its previous close of 81.46 late Thursday in North American trade. The dollar scaled a high of 81.54 intraday and a low of 81.19.

The euro traded higher against the dollar at $1.3429 on Friday, as compared to its previous close of $1.3390 late Thursday in North American trade. The euro scaled a high of $1.3444 intraday and a low of $1.3380.

In economic news from the U.S., a report from the Labor Department showed that a less than expected 209,000 jobs were added in July. The consensus estimate called for an addition of 233,000 jobs after non-farm payrolls expanded by 288,000 in the previous month. Meanwhile, unemployment edged up to a seasonally adjusted 6.2 percent in July, from 6.1 percent in the previous month.

A report from the U.S. Commerce Department showed personal income increased by 0.4 percent in June, matching the increase seen in the previous month. Personal spending rose by 0.4 percent in June following an upwardly revised 0.3 percent increase in May.

Data from Thomson Reuters and the University of Michigan showed U.S. consumer sentiment to have deteriorated less than previously estimated in the month of July, with the final reading coming in at 81.8, compared to the mid-month reading of 81.3.

A report from the Institute for Supply Management showed activity in the manufacturing sector expanded at a notably faster rate in July, with the ISM Purchasing Managers Index climbing to 57.1, up from 55.3 in June.

A Commerce Department report said construction spending in the U.S. tumbled by 1.8 percent to an annual rate of $950.2 billion in June from the revised May estimate of $967.8 billion. The sharp drop came as a surprise to economists, who had expected construction spending to increase by about 0.5 percent.

From Asia, China's manufacturing PMI rose to 51.7 from 51.0 in July, according to an official government data. The reading comes in ahead of economists' expectations of 51.4. Nonetheless, China's HSBC final manufacturing PMI dropped to 51.7 last month from 52.0. Economists expected the index to remain unchanged.

From Europe, British manufacturing sector logged its weakest growth in a year in July as growth in output and new orders eased from June, a survey by Markit Economics and the Chartered Institute of Purchasing and Supply showed Friday. The Markit/CIPS manufacturing Purchasing Managers' Index fell to 55.4 in July from a revised 57.2 in June. Economists expected the index to come in at 57.2, down from June's original estimate of 57.5.