Crude drops below $74 on low volume

Crude is trading below $74 per barrel amid high US unemployment rate undermining demand on fuel, alongside the absence of the US and Canada from markets due to the Labor holiday.

Crude today traded below $74 per barrel recording its highest around $74.42 and lowest around $74.07, while it currently is trading around $74.18 per barrel.

The US Labor Department on Friday said that the jobless rate in August rose by 9.6% from 9.5% in July as private payrolls gained 67 thousand after its July revision increase of 107 thousand; unemployment remained at an all time high despite of efforts and large stimulus plans offered last year.

Crude on Friday traded above $75 per barrel recording its highest around $75.51 and lowest around $73.19 per barrel, closing around $74.26 per barrel. It dropped by $0.42 or 0.6%, although several developing countries have rebounded from last year's recession, economic growth remains sluggish threatening further slowdown in the second half.

On the other hand, traders are eyeing China and other developing countries to help boost demand on oil in the upcoming years, as China continues to show growth from its current 9% rate. Meanwhile, markets will be dominated by a wave of calmness today as the US and Canada are missing from markets this week, due to the Labor day holiday. We await for the API to release data on Wednesday, followed by the EIA report on Thursday.

As for NYMEX as of 02:58 EST; motor gasoline fell to $191.790 per gallon to record $0.160; heating is trading around $205.160 per gallon dropping $0.570; whereas natural gasoline shed $0.051 to record $3.888. In London, Brent futures plunged $0.070 to record $76.600.

Ecpulse

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