Crude Oil Ends Below $94 After U.S. Jobs Data

(RTTNews) - U.S. crude oil shed much of the gains to end sharply lower on Friday, after data from the U.S. showed employment in the country to have increased much less than expected in August, fueling concerns of an over-supply situation as the economy continue to face headwinds.

Investors also kept a close watch on the situation in eastern Ukraine, even as Russia and Ukraine look set to announce a ceasefire. Nonetheless, reports indicate pro-Russian separatists and Ukrainian armed forces continuing with clashes in the Donetsk region.

Light Sweet Crude Oil futures for October delivery, the most actively traded contract, shed $1.16 or 1.2 percent to close at $93.29 a barrel on the New York Mercantile Exchange Friday.

Crude prices for October delivery scaled a high of $94.99 a barrel intraday and a low of $92.86.

On Thursday, crude oil ended sharply lower after a weekly official oil report from the U.S. Energy Information Administration showed crude stockpiles in the U.S. to have dropped less than expected last week, with the dollar strengthening.

Data released by the U.S. Energy Information Administration on Thursday showed crude oil stockpiles to have declined by a less than expected 0.9 million barrels in the week ended August 29. Reports that Ukraine and Russia agreed on steps to effect a ceasefire contributed to oil's weakness.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 83.74 on Friday, down from its previous close of 83.85 late Thursday in North American trade. The dollar scaled a high of 83.94 intraday and a low of 83.56.

The euro trended higher against the dollar at $1.2959 on Friday, as compared to its previous close of $1.3944 late Thursday in North American trade. The euro scaled a high of $1.2987 intraday and a low of $1.2922. In economic news from the U.S., employment in the U.S. for August rose much less than expected, the Labor Department said Friday. The non-farm payroll employment increased by 142,000 jobs in August compared to economists' estimates for an addition of about 225,000 jobs.

Despite the weaker than expected job growth, unemployment rate in the U.S. edged down to 6.1 percent in August from 6.2 percent in July, due largely largely to a decrease in the size of the labor force which fell by 64,000.

In economic news from the eurozone, a report from Eurostat showed eurozone GDP remained flat in the second quarter, expanding just 0.2 percent. Year on year, GDP grew 0.7 percent in the second quarter, after seeing a 1 percent expansion in the previous three months.

A report from Destatis showed German industrial production to have grown the most in July since early 2012, rising by a seasonally adjusted 1.9 percent compared to June. Economists had forecast production growth of 0.4 percent following the original 0.3 percent gain in June.

A leading indicator of economic activity in Japan continued to increase in July, though at a less than expected rate, preliminary figures from Cabinet Office showed Friday. The leading index rose to 106.5 in July from 105.9 in June, when it had risen for the first time in five months. Economists had expected the index to rise to 107.1.