Oil Continues to Fall as Fed Tapering Gets Jobless Claims Boost

West Texas Intermediate crude fell for a fifth day, the longest stretch of declines since December, as better-than-expected U.S. jobless claims raised concern that the Federal Reserve will trim stimulus measures.
Prices dropped as much as 1.1 percent. About 333,000 American workers applied for unemployment benefits last week, below the 335,000 estimate by economists in a Bloomberg survey. Applications for jobless claims, averaged over four weeks, slid to the fewest in five years. The Fed may begin curbing bond buying in September, Fed Bank of Chicago President Charles Evans said Aug. 6. U.S. crude output jumped last week to the highest level since 1989, government data showed yesterday.

via Bloomberg

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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