Dismal US jobs data raises concerns that the country is heading back into recession- oil dips

05-Sep-11

Job data from USA reported the worst performance since September 2010, leading to a drop in crude oil futures amid a weakening euro vs the dollar as European stock markets slid on growing fears that the US is heading back into recession. October contract on the Nymex dipped to US$84.8 per barrel while Brent crude on ICE futures exchange fell to US$111.2. Tropical storm Lee weakened to a tropical depression in the US Gulf and moved inland, causing energy companies to return crews to platforms with a view to resume shuttered oil and gas production. The U.S. Labor Department reported the nonfarm payroll figure was unchanged from July, the worst performance since September 2010. A government report showed that the US economy added no jobs in August, leaving the unemployment rate at 9.1%. Fears are also escalating ahead of upcoming economic releases for September, which may indicate more clearly whether the global economy is indeed going back into recession. In the currency markets, the dismal US jobs report sent the euro to its lowest level against the dollar since Aug. 12, helping to drive investors out of oil.