Crude ends lower for second straight day

Strong dollar and weak labor market report pressure prices Crude prices ended lower for second straight day on Friday, 06 July 2012 at Nymex. Prices ended lower pressured by a stronger dollar and as the U.S employment report fell short of expectations and pointed to a slowdown in the labor market. With Friday's loss, oil ended lower for eighth week out of last ten weeks. Light and sweet crude for August delivery fell $2.77 (3.2%) to $84.45 a barrel on the New York Mercantile Exchange on Friday. Oil lost 0.6% for the week. For June, however, prices declined 1.8%, and the quarterly picture was yet darker. March-to-June losses reached 18%. The Labor Department in US reported on Friday that the U.S. economy added 80,000 jobs in June. Market had expected a rise of 100,000 in payrolls. The unemployment rate remained at 8.2%. In the currency market on Friday, the U.S. dollar index, which weighs the strength of the dollar against a basket of six currencies rose by 0.5%. Weakness in the euro pushed the dollar to a two-year high versus the single currency, adding to the woes for gold and other dollar-denominated commodities. In the latest weekly inventory report, the Energy Information Administration reported during the week that crude supplies down 4.3 million barrels in the week ended 29 June 2012. Market had expected a decline of 2 million barrels. The EIA also reported an increase of 200,000 barrels for gasoline inventories and a decline of 1.1 million barrels for supplies of distillates. Market had expected gasoline stockpiles to come in unchanged and an increase of 500,000 barrels for distillates. The report was delayed a day due to Fourth of July holiday. Among other energy products on Friday, August gasoline retreated 5 cents, or 1.8%, to end at $2.72 a gallon. On the week, however, gasoline gained 3.2%, up for two consecutive weeks. Heating oil for the same month's delivery retreated 6 cents, or 2.1%, to settle at $2.71 a gallon. The product was unchanged on the week, however. August natural gas retreated 17 cents, or 5.7%, to $2.78 per million British thermal unit on Friday. On the week, natural gas declined 1.7%, snapping a three-week winning streak. The Energy Information Administration said natural-gas supplies rose 39 billion cubic feet on the week ended 29 June. Market had expected an increase between 41 bcf and 45 bcf. The report was a day late due to the Fourth of July holiday.