Oil slips as weak U.S. jobs report gives 'reality check'
Oil prices fell on Friday after a weaker than expected U.S. jobs report indicated a patchy economic recovery that could mean slower fuel demand during a resurgent pandemic.
Losses were capped by concerns that U.S. supply would remain limited in the wake of Hurricane Ida, which cut production from the U.S. Gulf of Mexico.
Brent crude futures settled lower by 42 cents, or 0.58%, at $72.61 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were down 70 cents or 1%, at $69.29.
Both benchmark oil contracts were largely steady for the week, with U.S. crude up 0.80%.
Dollar weakens after U.S. payrolls miss
The dollar weakened further against a basket of major currencies on Friday after a much softer than expected U.S. payrolls report that is likely to keep the Federal Reserve on hold in scaling back its massive stimulus measures.
The dollar index dropped to a low of 91.941, its lowest level since Aug. 4, and was down 0.2% at 92.03 by 2:57 p.m. ET.
The dollar has been subdued on uncertainty over the path of Fed policy. Fed chair Jerome Powell said last Friday that while tapering of its stimulus could begin this year if job growth continues, the central bank was in no hurry to do so.
Rising Covid-19 cases in recent weeks have brought on concerns the economic recovery could stall. The jobs data will likely keep the Fed on hold.
The euro strengthened against the greenback following the report, touching a high of 1.1909 to match its best level since July 30.
The single currency has been supported by data earlier this week that showed regional inflation at a decade high and hawkish comments from European Central Bank officials ahead of a policy meeting on Sept. 9.
The euro was last up 0.1% at $1.189.
The Japanese yen fell 0.3% versus the greenback to 109.64 per dollar, gaining ground after the jobs data, but showed little reaction to Prime Minister Yoshihide Suga’s decision to step down at the end of the month.
Reference: Reuters, CNBC
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