March Job Data Affecting Crude Oil Futures

With the U.S. Labor Departments report last week well below market expectations for new jobs for March, crude oil future prices and stocks dropped more than 1% on Wall Street today, April 9.

The last week in March, per the US Department of Labor, had weekly unemployment claims with a decrease of 6,000 from the previous week.

These figures are based on seasonally adjusted initial claims.

Even though the government reported an additional 120,000 jobs were added for March, this was way below market expectations.

The dollar dropped against the yen to a one month low which is believed to be because of the slowdown in U.S. jobs.

Oil prices dropped more than $1.00 a barrel after Iran agreed to resume talks about its nuclear program with five permanent United Nations Security Council members and Germany. The talks will begin in Istanbul on April 14.

Libya is looking into foreign oil companies. Salem Qanan, who sits on the National Transitional Council’s Oil Committee said documents have been requested from the Committee.

During Gaddafi’s ruler ship of over 40 years, many of the word’s majors either had operated in Libya or signed oil deals with Tripoli.

Back in October, Libya had pledged to probe into previous Gaddafi oil deals. Uncertainty about the old contract deals under Gaddafi is expected to delay the oil industry’s return to normal.

In other news today, chief executive officer Gregg Garland with ConocoPhillips said he would not comment on the negotiations for the sales of his refinery in Trainer, Pennsylvania, that produces 185,000 barrels a day.

The refinery in Trainer produces a higher than normal amount of jet fuel. Sources say Delta Airlines is considering a bid for the refinery. Jet fuel accounts for a third of Delta’s costs, according to a Reuters report today.