MARKET WATCH: NYMEX prices fall on strengthening dollar
Oil prices fell more than $1/bbl on the New York market Mar. 6 on a strengthening dollar, prompted by statistics showing the US employment rate was improving.
The Bureau of Labor Statistics reported the US gained 295,000 jobs in February. Economists surveyed by the Wall Street Journal before the report was released had said they expected an increase of 240,000.
The government calculated February’s unemployment rate at 5.5%, down from January’s 5.7%.
Analysts said the jobs gain drove the dollar higher compared with other currencies. Oil is traded in dollars so a stronger dollar makes oil more expensive for buyers using foreign currencies.
The New York Mercantile Exchange April crude oil contract was down $1.15 to $49.61/bbl Mar. 6, and the May contract decreased $1.08 to $51.47/bbl.
The natural gas contract for April edged down less than a penny to remain at a rounded $2.84/MMbtu. The Henry Hub, La., gas price was $2.88/MMbtu, down 39¢.
Heating oil for April dropped nearly 1¢ to a rounded $1.87/gal. Reformulated gasoline stock for oxygenate blending for April delivery was down less than a penny to a rounded $1.88/gal.
The April ICE contract for Brent crude oil declined 75¢, settling at $59.73/bbl, and the May contract dropped 78¢ to $60.18/bbl. The ICE gas oil contract for March climbed $1.25 to $582.25/tonne.
The average price for the Organization of Petroleum Exporting Countries’ basket of 12 benchmark crudes on Mar. 6 was $55.63/bbl, down 14¢.
Contact Paula Dittrick at [email protected].
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report.
Paula Dittrick | Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.
