Oil Declines After Jobs Report

Oil fell after a government report showed hiring in the U.S. cooled more than forecast last month, stoking concern fuel demand will drop as economic growth slows.
TradingEconomics.com, Bloomberg 1/4/2008 10:49:57 AM

With employment slowing, demand for fuel may fall as U.S. consumers cut spending. Gasoline supplies rose to the highest since March last week, an Energy Department report showed yesterday.

Crude oil for February delivery fell as much as 68 cents, or 0.7 percent, to $98.50 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $98.72 at 9:04 a.m. New York time.

Yesterday, the contract set a record of $100.09 before closing down 44 cents at $99.18 a barrel. Prices are up 77 percent from a year ago.

Brent crude for February settlement traded down 17 cents at $97.43 a barrel at 9:05 a.m. New York time on the ICE Futures Europe exchange. The contract rose to a record intraday price of $98.50 a barrel yesterday.