Volatile crude ends modestly higher

Better than expected job report help prices rise

Crude prices remained volatile for most part of the day on Friday, 02 December 2011 at Nymex. Prices ended modestly higher but off their session highs. Prices gained following a better than expected job report at Wall Street on Friday. Prices also rose on hopes of more central bank stimulus measures ahead of the euro zone summit.

Light and sweet crude for January delivery rose $0.76 (0.8%) to $100.96 a barrel on the New York Mercantile Exchange on Friday. Prices rose to a high of $101.56 during intra day trading. For the week, crude gained 4.3%. For the month of November, oil futures gained 7.7%.



Data at Wall Street from the Labor Department on Friday showed that the U.S. economy created 120,000 jobs in November and the unemployment rate fell to 8.6%, its lowest level in more than two and a half years. The big drop in the jobless rate, which stood at 9.0% in October, stemmed mainly from a decline in the size of the labor force. Investors reacted positively to the report. The Dow Jones industrial average jumped as much as 125 points.

In the currency market on Friday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies rose by almost 0.3%.

European leaders meet next week, with France and German leaders meeting on Monday to iron out more details about how to staunch the euro-zone sovereign-debt crisis.

Earlier during the week, in the weekly inventory report, the Energy Information Administration said that crude-oil inventories rose 3.9 million barrels in the week ended 25 November. Market had expected an increase of 1.5 million. The EIA reported gasoline supplies up 200,000 barrels, compared to expectations of a rise around 1.5 million. Distillates inventories rose 5.5 million. Market had expected a decline of 1.5 million for distillates.

Among other energy products on Friday, gasoline for January delivery added 6 cents, or 2.3%, to $2.62 a gallon. Heating oil for the same month's delivery rose 2 cents, or 0.7%, to $2.99 a gallon. On the week, gasoline rose 6.6%. That snapped a three-week losing streak. Heating oil futures rose 1.7% this week.

January natural gas declined 6 cents, or 1.8%, to $3.58 per million British thermal units on Friday. On the week, natural-gas futures declined 2.2%. Natural gas futures has wobbled in the past year, as shale-gas production has taken supplies to a record level.