Crude prices end little lower

Better than expected job data keep losses under check

Crude prices ended lower once again on Friday, 06 January 2012 at Nymex. Strong dollar and lingering European debt crisis pushed prices lower. But losses were kept under check following a better than expected job report from the Labor Department on Friday. But prices registered weekly gains.

Light and sweet crude for February delivery fell $0.25 (0.3%) to $101.56 a barrel on the New York Mercantile Exchange on Friday. It rose to a high of $102.8 during intra day trading. For the week, crude gained 2.8%. For the year 2011, crude futures gained 8.2%.



In the currency market on Friday, the Dollar Index, which weighs the strength of dollar against basket of six other currencies rose by almost 0.4%. The dollar index rallied to a one-year high on worries over European bank capital, a mixed reception for a French bond auction and better U.S. economic data. For the year 2011, the dollar index had gained 1.6%.

Among economic data expected for the day at Wall Street, the December payrolls report featured a headline unemployment rate of 8.5%, which is down from the 8.6% in the prior month and less than the 8.7% that had been widely anticipated. Moreover, nonfarm payrolls climbed by 200,000, which exceeds the increase of 150,000 that had been expected. Private payrolls increased by 212,000 to exceed the consensus call for an increase of 170,000.

On Friday, the focus of concern from Europe turned to Hungary, whose debt was downgraded to junk status by Fitch Ratings earlier Friday. The downgrade reflected “further deterioration in the country's fiscal and external financing environment and growth outlook.

In the weekly inventory report, the EIA reported earlier during the week that crude-oil supplies rose 2.2 million barrels in the week ended 30 December 2011. Market was expecting a decline of 450,000 barrels. The EIA also said gasoline inventories rose 2.5 million, and supplies of distillates went up 3.2 million barrels. Market had expected increases of 1.5 million barrels and 500,000 barrels, respectively.

Among other energy products on Friday, February gasoline gained 2 cents to settle at $2.75 a gallon. On the week, gasoline gained 3.5%. Heating oil for the same month's delivery added 3 cents, or 1%, to $3.07 a gallon. That put weekly gains at 5.4%.

February natural gas gained 8 cents, or 2.8%, to $3.06 per million British thermal units. It gained 2.4% on the week.