Oil settles higher near four-year peak, dollar off six-week high
Oil futures tilted higher in American trade on track for the fourth weekly profit in a row as the dollar index backed off August 20 highs, following earlier data from the US, the world's largest energy consumer.
As of 04:54 GMT, US crude futures due in November rose 0.42% to $74.64 a barrel, while Brent December futures inched up 0.12% to $84.68 a barrel, as the dollar index shed 0.05% to 95.71 against a basket of major rivals.
US national security adviser John Bolton said the Trump administration is aiming to completely stop Iranian oil exports, calling for the entire world to refrain from purchasing Iranian oil to heap pressure on the country regarding their nuclear program and interference with the region's internal affairs.
US Inventories Surge
On Wednesday, the Energy Information Administration released its report on US crude inventories, showing a sharp increase of 8 million barrels in the week ending September 28, adding to the 1.9 million increase in the previous reading, while analysts expected a 1.1 million build, with total stocks now amounting to 404 million barrels, at five-year averages for this time of year.
Gasoline stocks fell 0.5 million barrels, still 7% above averages, while distillate stocks fell 1.8 million barrels, making them 3% below averages.
Otherwise, Russian energy minister Alexander Novak said earlier today the global oil market is relatively balanced, even though existing uncertainties could still push prices higher, mainly because of US sanctions on Iranian oil exports.
Oil prices are up 20% so far this year as OPEC and Russia carry on their agreement to cut global output to easy a previous supply glut, while the US withdrew from the Iran deal and sanctioned their oil exports.
US Oil Rig Count
Baker Hughes, a US oil services company, reported a drop of two rigs in the oil rig count to a total of 863 rigs, the third weekly increase in a row. .
US output has recently risen to the second highest in the globe, taking the place of Saudi Arabia while Russia continues at the top with 11.21 million bpd.
US Labor, Trade Data
Other US data today showed the unemployment rate fell to 3.7% near 49 year lows from 3.9%, while averages wages rose 0.3% as expected.
The economy created 134 thousand new jobs last month, down from 270 thousand in August, and below estimates of 185K, as the trade deficit widened to $53.2 billion from $50.0 billion, barely below estimates of $53.4 billion.
Sterling rises on track for weekly gains versus dollar
Sterling rose in American trade off September 10 lows against the greenback, on track for the seventh weekly profit in eight, following a spate of data from Britain and the US today.
As of 04:37 GMT, GBP/USD rose 0.57% to 1.3095, with an intraday low at 1.3003, and the highest since September 27 at 1.3123.
Earlier UK data showed the Halifax House Price Index fell 1.4% m/m, compared to a 0.2% drop in August, while growing 2.5% y/y in the three months ending September, down from 3.7% in the previous reading.
US Labor, Trade Data
Earlier US data showed the unemployment rate fell to 3.7% near 49 year lows from 3.9%, while averages wages rose 0.3% as expected.
The economy created 134 thousand new jobs last month, down from 270 thousand in August, and below estimates of 185K, as the trade deficit widened to $53.2 billion from $50.0 billion, barely below estimates of $53.4 billion.
Euro falls off four-month high against dollar
Euro tilted lower in American trade away from June 14 highs against the greenback, following earlier data from the euro zone and the US today.
As of 03:58 GMT, EUR/USD slipped 0.05% to 1.1508, with an intraday low at 1.1484, and a high at 1.1550.
Earlier German data showed producer prices rose 0.3% in August, up from 0.2%, while accelerating to 3.1% y/y from 3.0%.
German factory orders rose 2.0%, compared to a 0.9% drop in July, while French government budget deficit widened to €97.3 billion from €82.8 billion.
French trade deficit widened as well to €5.6 billion from €3.4 billion, while Italian retail sales rose 0.7%, compared to no change in July and beating estimates of 0.2%.
European Commission President Jean Claude Juncker warned that failing to reach a Brexit deal with Britain could be catastrophic for both sides, expressing hopes to reach such a deal in November.
US Labor, Trade Data
Earlier US data showed the unemployment rate fell to 3.7% near 49 year lows from 3.9%, while averages wages rose 0.3% as expected.
The economy created 134 thousand new jobs last month, down from 270 thousand in August, and below estimates of 185K, as the trade deficit widened to $53.2 billion from $50.0 billion, barely below estimates of $53.4 billion.
Wall Street opens mostly lower after labor data
US stock indices opened the last session of the week lower, with the tech sector leading the decline following a basket of labor data from the US, which all but continued to pave the way for the Fed's policy tightening and rate hikes.
Earlier US data showed the unemployment rate fell to 3.7% near 49 year lows from 3.9%, while averages wages rose 0.3% as expected.
The economy created 134 thousand new jobs last month, down from 270 thousand in August, and below estimates of 185K, as the trade deficit widened to $53.2 billion from $50.0 billion, barely below estimates of $53.4 billion.
US treasury yields are still residing at multi-year highs following upbeat data recently and a string of optimistic opinions expressed by multiple Fed officials.
Stock Performance
As of 02:44 GMT, Standard and Poor's 500 barely inched down to 2,901.18, while Dow Jones slipped 0.17%, or 44.31 points to 26,583.17.
Tech-heavy NASDAQ slid 0.37%, or 29.36 points to 7,950.36.