Crude Oil Ends Lower But Gains 1.8% For Week

(RTTNews) - U.S. crude oil snapped a two-day gain to end lower on Friday, after some mixed U.S. jobs data raised concerns over its impact on energy demand and the possibility of a delay in the Federal Reserve plans on hiking interest rates. Investor sentiments were also impacted after most global stock markets declining, after the disappointing unemployment data.

For the week, crude oil futures gained about 1.8 percent.

Nonetheless, oil pared some of the losses after data from Baker Hughes showed oil rigs in the U.S. to have declined during the week.

Oil services firm Baker Hughes Inc., in its weekly rig count on Friday said U.S. rigs actively drilling for oil dropped by 13 units to 662 rigs as of September 4. The total active rig count, including natural-gas rigs, was 864, down 13 rigs.

While the Labor Department's report on Friday showed a much weaker than expected U.S. job growth in August, the unemployment rate still dropped to a new seven-year low. The economy generated only 173,000 jobs last month, but the unemployment rate dipped to 5.1 percent. Hourly wages were up 2.2 percent from a year ago.

The weaker than expected growth in U.S. employment has investors wondering what the Federal Reserve will do with interest rates when it holds its policy meeting later this month.

Light Sweet Crude Oil futures for October delivery, the most actively traded contract, dropped $0.70 or 1.5 percent, to settle at $46.05 a barrel on the New York Mercantile Exchange Friday.

Crude prices for October delivery scaled a high of $47.23 a barrel intraday and a low of $45.76.

On Thursday, crude oil gained $0.50 or 1.1 percent, to settle at $46.75 a barrel, with prices having leveled off after mid-week data showed US crude oil inventories had another massive build last week. According to the Energy Information Administration, crude stockpiles rose by 4.7 million barrels last week.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 96.15 on Friday, down from its previous close of 96.40 in late North American trade on Thursday. The dollar scaled a high of 96.58 intraday and a low of 95.97.

The euro trended higher against the dollar at $1.1154 on Friday, as compared to its previous close of $1.1124 in North American trade late Thursday. The euro scaled a high of $1.1191 intraday and a low of $1.1091.

On the economic front, the Labor Department said non-farm payroll employment climbed by 173,000 jobs in August, but well below the increase of 220,000 jobs anticipated by economists. Meanwhile, unemployment rate edged down to 5.1 percent in August from 5.3 percent in July, while economists expected the rate to dip to 5.2 percent.

Germany's factory orders declined at the fastest pace in six months in July, data from Destatis revealed Friday. Factory orders dropped 1.4 percent in July from the previous month, which was the biggest fall since January when it slid 2.6 percent.

Economists had forecast orders to fall at a slower pace of 0.6 percent. Orders had increased 1.8 percent in June and decreased 0.3 percent in May.

Germany's construction activity expanded at the slowest pace in seven months in August, data from Markit showed Friday. The seasonally adjusted Purchasing Managers' Index fell to 50.3 in August from 50.6 in July. This was the least marked increase in seven months.

French consumer confidence held steady in August, defying economists' expectations for an increase, figures from the statistical office INSEE showed Friday. The consumer confidence index came in at 93.0 in August, the same reading as in July. Economists had expected the index to rise to 94.0.