Oil Rises After NFP Disappointment

Oil prices edged higher on Thursday as the U.S. dollar slipped following weaker-than-expected U.S. non-farm payrolls data.

Poll indications that Greek citizens were expected to back a cash-for-reforms deal in a referendum on Sunday added to the bullish momentum, traders said.

Traders were also keeping a close eye on nuclear talks between Western powers and Iran, looking for any sign of a deal to lift sanctions on the oil-rich nation.

Brent futures were trading 60 cents higher at $62.61 per barrel at 1247 GMT. Front-month U.S. crude futures were up 18 cents at $57.14 per barrel.

The payrolls data weighed on the U.S. currency, which in turn lent support to dollar-priced oil. The figures showed U.S. job growth slowed in June and Americans left the labour force in droves.

Oil prices had slumped between 2.5 and 4 percent on Wednesday after a surprise weekly rise in U.S. crude inventories, the first build since April. [EIA/S]

The stock increase came on the back of strong U.S. production.

“Overall, production was supported by increased output from the Gulf of Mexico,” Barclays said in a note following the publication of the inventories data.

via Reuters

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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