Crude oil trades lower as dollar strengthens after NFP

Crude oil traded lower on Friday as the dollar’s strength following U.S. nonfarm payrolls day cut demand on commodities.

The U.S. dollar leaped today to hit an 11 1/2-year high against a basket of major currencies, where the dollar index hit a peak of 97.73, while currently hovers around 97.69. 

The dollar’s rally has caused a sell off in commodities, as they become more expensive for non-dollar holders.

Data released on Friday showed that American employers added 295,000 jobs in February, compared with 257,000 jobs in January and analysts’ forecasts of 240,000.

The upbeat data boosted the dollar on rising expectations the Fed may hike interest rates earlier than anticipated.

“Iran's semi-official Mehr news agency on Friday quoted a national oil firm official affirming Tehran would increase crude exports if sanctions were lifted,” according to Reuters.

U.S. Secretary of State John Kerry said a nuclear deal with Tehran would lower security concerns of Gulf Arab countries.

A nuclear deal with Iran could remove Western sanctions and thereby cause an oversupply in the oil market, which would push down further.

As of 10:32 p.m. GMT, crude oil for April delivery traded around $49.37 a barrel, where the lowest level in the session was recorded at $49.28.

Brent crude oil also traded lower around $59.64, after registering a high of $61.25 and a low of $59.51.