Oil Falls 1% as Demand Doubts Rise

Oil prices fell around 1 percent on Friday, heading for a weekly decline, as weaker-than-expected U.S. economic data weighed on the energy demand outlook and Hurricane Joaquin veered away from oil installations in the U.S. East Coast.

The dollar’s drop limited losses in oil. The currency fell on concerns that the U.S. economy may still be too weak to allow the Federal Reserve to raise interest rates this year.

Oil and most other commodities are traded in dollars and a weaker greenback makes those raw materials more affordable to users of the euro and other currencies.

Brent, the global oil benchmark, was down 62 cents, or 1.3 percent, at $47.07 a barrel by 11:45 a.m. EDT (1545 GMT).

U.S. crude was off 60 cents, or also about 1.3 percent, at $44.14.

Both Brent and U.S. crude were down about 3 percent on the week.

U.S. employers slammed the brakes on hiring over the last two months and wages fell in September. U.S. factories were feeling the global chill and shed 9,000 jobs in September after losing 18,000 in August, according to the Labor Department’s survey of employers.

Via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza