Crude oil prices drop as US unemployment rises

Crude oil prices declined Friday after the US Labor Department said that 263,000 jobs were lost in the US in September, pushing the unemployment rate there to 9.8 percent.

That translates to 15.1 million people now out of work in the US, according to the latest figures, raising further worries about demand for oil and oil products.

November contracts for West Texas Intermediate crude was down $1.11 to $69.71 per barrel just before the close of trade on the New York Mercantile Exchange, while at last report Brent crude was $1.41 lower to $67.78 per barrel on the ICE Futures Europe exchange in London.

Nymex November gasoline dropped 2 cents to $1.74 per gallon in afternoon trade while November heating oil was down 3 cents to $1.80 per gallon, but November natural gas was up 18 cents to $4.65 per million British thermal units even though inventories are at record highs.

December gold was $3.30 higher to $1,004 per troy ounce in New York trade after the US dollar weakened on the new Labor Department data, while December silver was down 21 cents to $16.23 per troy ounce.

January platinum fell $5.90 to $1,283.40 after US automobile sales were down in September, weakened after the end of the “Cash for Clunkers” trade-in program.

Prices for palladium were higher in mid-morning trade, adding $4.25 to $297.20 as investors looked for bargains after recent declines.

December copper was dropped 6 cents to $2.68 per pound in New York and three-month copper in London dropped $90 to $5,895 per tonne, hurt not only by the jobs data, but also after London Metal Exchange-monitored warehouses saw stockpiles of the metal used in manufacturing and construction grow for the 12th consecutive week.

Story link: Crude oil prices drop as US unemployment rises