A greater-than-expected loss of jobs in the US has nervous oil investors backing down from yesterday’s gains resulting in prices dipping under the $70 a barrel mark. Analysts had predicted that if oil broke the $72 resistance level, then prices could shoot to $75 in short order but this is looking less likely given today’s employment figures.
Oil prices slid below $70 a barrel Friday as signs of a sluggish U.S. economic recovery discouraged stock and crude investors.
By midday in Europe, benchmark crude for November deliver was down 95 cents at $69.87 in electronic trading on the New York Mercantile Exchange. The contract added 21 cents to settle at $70.82 on Thursday.
“At $70 a barrel, investors have priced in a fairly sharp economic recovery,” said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. “That makes it vulnerable to bad economic news.”
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