Crude Oil Ends Lower On Soft Data; Gains 2.1% For Week

(RTTNews) - U.S. crude oil ended sharply lower on Friday, after some soft macroeconomic data out of the U.S. with some soft, less-than-expected growth in non-farm payroll employment even as the dollar weakened against a basket of major currencies. Oil prices were on a high after some positive economic data out of the US and China spurred optimism about global oil demand. Nonetheless, oil futures gained about 2.1 percent for the week.

Light Sweet Crude Oil futures for September delivery, the most actively traded contract, dropped $0.95 or 0.9 percent to close at $106.94 a barrel on the New York Mercantile Exchange Friday.

Crude prices for September delivery scaled a high of $108.82 a barrel intraday and a low of $106.45.

Yesterday, oil settled sharply higher after some upbeat macroeconomic data out of the U.S. fueled hopes of continued demand growth for oil, notwithstanding a strong dollar. Investors exuded optimism after some better-than-expected initial jobless claims and manufacturing activity expansion in the U.S., Europe and China.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.93 on Friday, down from 82.35 late Thursday in North American trade. The dollar scaled a high of 82.49 intraday and a low of 81.82.

The euro traded higher against the dollar at $1.3265 on Friday, as compared to $1.3208 late Thursday in North America. The euro scaled a high of $1.3293 intraday and a low of $1.3190.

In economic news from the US, the Labor Department said non-farm payroll employment increased by 162,000 jobs in July following a downwardly revised increase of 188,000 jobs in June. Economists had expected employment to increase by about 175,000 jobs compared to the addition of 195,000 jobs originally reported for the previous month. Despite the weaker than expected job growth, the unemployment rate dipped to 7.4 percent in July from 7.6 percent in June. The unemployment rate had been expected to edge down to 7.5 percent.

Meanwhile, the Commerce Department said personal spending increased by 0.5 percent in June after edging up by 0.2 percent in May. The increase in spending exceeded economist estimates for a 0.4 percent increase. Additionally, the Commerce Department said personal income rose by 0.3 percent in June following a 0.4 percent increase in May. Economists had expected income to increase by 0.4 percent.

With a drop in orders for non-durable goods partly offsetting a jump in orders for durable goods, the U.S. Commerce Department said new orders for manufactured goods rose less than expected in June. Factory orders increased 1.5 percent in June following a revised 3.0 percent increase in May. Economists expected orders to rise by about 2.3 percent.

Elsewhere, eurozone producer prices rose 0.3 percent in June from a year ago, reversing May's 0.2 percent fall, Eurostat reported. The rate matched economists' expectations. The industrial producer price index remained stable on a monthly basis as expected by economists, following a 0.3 percent drop in May.

British house prices recorded their strongest growth in nearly three years in July and the average home value climbed to the highest level in five years. The house price index increased 3.9 percent on an annual basis in July, notably faster than June's 1.9 percent rise, the Nationwide Building Society said Friday.