WTI prices broke past the 99.00 level on the day, but was this due to the DOE report or Ben Bernanke?
Is there really any other way to describe Friday’s U.S. jobs report other than dismal? In case you were on holiday, the U.S. Bureau of Labor Statistics showed the smallest increase in employment since the end of the recession in June 2009.
Energy prices were mixed yesterday….The DOE released disappointing storage data for both crude oil and natural gas, but Henry Hub gas futures were the only market to sell off. WTI rose, but lagged behind the products.
The EUR/USD cross has failed to hold support, but crude oil has yet to respond. The euro currency is down 1½% thus far this week against the U.S. dollar. Given the strong correlation between the EUR/USD and oil (Brent) prices, 0.8249 as of last week, it would not have been unreasonable to expect knock-on weakness to crude oil values.
The latest EIA data does nothing to change our mind.
Spot Nymex crude oil for August delivery settled last night at 95.42, 1 penny above the settle for Wednesday, June 22nd, the day prior to the IEA’s thinly veiled attempt to control price. Brent oil futures closed last night at 112.48. That is still 1.73 or 1½% below the close for June 22nd, but it is 7.36 (!) or 7.0% (!) above last Friday’s settle.