Crude oil prices fell sharply again on Friday, with the US benchmark price closed at its lowest level in more than five years. Oil was recovered after the US jobs report was stronger than expected, but then declined to trade at its lowest level since mid-2009, weighed down by a stronger dollar and the price cuts were made Saudi Arabia to the buyers from Asia. A stronger greenback usually negative impact on commodities traded in dollars, because it will make the price becomes more expensive for holders of other currencies.
On the New York Mercantile Exchange, crude oil futures for January delivery fell 97 cents, or 1.5%, ending at $ 65.84 a barrel, marking the lowest close for front-month contract since July 29, 2009. The US benchmark price weekly loss of 0 , 5% after rising during the week previous Friday. Meanwhile, Brent crude for January delivery on London’s ICE Futures exchange slipped 57 cents, or 0.8%, to $ 69.07 a barrel. This is a loss of 1.5% for the week and the lowest close since October 7, 2009.
Non Farm Payroll data showed the US economy added 321 000 jobs in November, exceeding the median forecast of economists had forecast 235,000 jobs from non-agricultural sector. This powerful data becomes a major factor the fall in crude oil prices that are still in the groove of the medium-term decline.
On Thursday, Saudi Arabian Oil Co., also known as Saudi Aramco, lowered the official selling prices for all oil supplies to Asia in January by between $ 1.50 and $ 1.90 per barrel, compared with December. It also cut prices for all US crude oil prices to between 10 cents and 90 cents per barrel. The oil market has recently interpreted the monthly price adjustment Saudi Arabia as a sign of goodwill oil producers to maintain market share through price wars rather than adjust the volume of exports.
At the same time the price of gold dipped as well as US jobs report stronger than expected dim the luster of gold as a safe haven but the price of this precious metal still managed to close the week with a 1.3% higher.
Gold for February delivery fell $ 17.30, or 1.4%, ending at $ 1,190.40 per ounce. Silver for March delivery lost 32 cents, or 1.9%, to $ 16.26 per ounce. Stronger economic data increases the likelihood of higher interest rates weaken demand for gold because this komditas not produce flowers.
A day earlier, gold closed in the red zone but still able to hold tight to the key level of $ 1,200 an ounce after the European Central Bank decided to postpone additional stimulus. ECB kept its key interest rate unchanged at 0.05% and announced that they would wait until 2015 to consider measures support additional markets, including buying European debt.