“Oil fell before a report that will indicate the strength of the U.S. economy and as OPEC prepares to meet in Vienna next week to decide output quotas.
Futures have fluctuated from $98 to $104 a barrel this week. The U.S. Labor Department will say today that employers added fewer jobs in May, according to a Bloomberg News survey. The Organization of Petroleum Exporting Countries will respond at its June 8 conference if the world needs more crude, Saudi Arabian Oil Minister Ali Al-Naimi said yesterday. An explosion at a Chevron Corp. (CVX) refinery in Wales killed four workers.
“We expect the non-farm payrolls to be weak, and this will have a negative effect on market sentiment and thereby the appetite for riskier assets such as oil,” said Thina Saltvedt, an analyst at Nordea Bank AB in Oslo. “Higher fuel prices in the U.S. seem to have started to bite on demand, and so we don’t expect a big upswing in demand this summer.”
Crude for July delivery traded at $99.33 a barrel, down $1.07, in electronic trading on the New York Mercantile Exchange at 11:45 a.m. in London. It earlier rose as much as 47 cents. Prices are little changed this week and have gained 34 percent in the past year.
Brent crude for July delivery was $1.32 lower at $114.22 a barrel on the London-based ICE Futures Europe exchange.”
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