Oil prices hit reverse as dollar jumps on US data

6th November 2015, Comments 0 comments

The oil market fell Friday, reversing earlier gains as the dollar surged on bright US jobs data that boosted hopes of a rate hike before year-end.

In late afternoon deals in London, Brent North Sea crude for December shed 51 cents to stand at $47.47 per barrel.

US benchmark West Texas Intermediate for delivery in December slid 26 cents to $45.46 per barrel compared with Thursday's close.

The Labor Department reported that the US economy added 271,000 jobs in October, 90,000 more than analysts expected. The agency also reported a solid 2.5 percent rise average hourly pay.

In reaction, the European single currency euro fell to $1.0707 -- last seen in late April.

"Oil was slow to react to the strong jobs number given the positive implications for oil demand in a growing US economy," said CMC Markets analyst Jasper Lawler.

"Eventually oil rolled over with the rest of the commodity complex for a third day of losses."

The data is a closely watched gauge of the unemployment situation in the world's biggest economy and top oil consuming nation.

The oil market is meanwhile struggling with oversupply and weak demand owing to sluggish global growth led by top energy guzzler China.

Prices have plunged by more than half from peaks of over $100 a barrel in June last year.

The International Monetary Fund has projected slower growth for the world economy this year and next.

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© 2015 AFP

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