US jobless rise puts pressure on oil prices

5 October 2009

Oil prices ended the week below $70 (€48.14) a barrel after US unemployment reached its highest rate for more than 25 years on Friday (October 2nd).

Figures from the country's Labour Department showed employers cut 263,000 jobs during September, taking the number of out-of-work people to its highest level since June 1983.

The figures dashed hopes of a speedy economic recovery in the world's biggest consumer country, prompting oil prices to fall as low as $68.32 in intraday trading.

US crude for November delivery eventually ended the week at $69.95 a barrel, down 87 cents on the previous day, while London Brent crude fell $1.12 to close at $68.07.

Heating oil and gasoline prices also fell as traders remained concerned about the future of global fuel demand, with the US jobless data dashing hopes of a speedy economic recovery.

The losses helped cancel out part of the week's earlier gains after prices had jumped by nearly six per cent in one day on Wednesday (September 30th) - marking the biggest daily hike since April.

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