Crude oil futures traded lower in the early part of Friday’s Asian session ahead of what some traders view as a critical U.S. non-farm payrolls report for August.
On the New York Mercantile Exchange, light, sweet crude futures for October delivery fell 0.15% to USD108.21 per barrel on Asian trading Friday. The October contract settled higher by 1.06% at USD108.37 per barrel on Thursday.
Better-than-expected economic indicators out of the manufacturing and labor markets bolstered demand for oil as well.
In U.S. economic news out Thursday, the ADP National Employment Report showed the addition of 176,000 private sector jobs last month, but that missed the estimate calling for the addition of 180,000 new jobs. The July number was revised down to 198,000 from 200,000.
The Labor Department said initial claims for jobless benefits fell by 9,000 last week to 323,000. The less volatile four-week moving average fell 3,000 to 328,500, the lowest reading since October 2007. The Labor Department releases the August jobs report Friday before the open of U.S. markets.
The Institute for Supply Management said its August services purchasing managers index rose to 58.6% last month from 56.0% in July. That is good for the best reading since the index was created in 2008. Economists expected an August reading of 55%. The U.S. is the world’s largest oil consumer.
Meanwhile, the Energy Information Administration reported that oil inventories fell by 1.84 million barrels to 360.2 million last week, more than market calls for a decline of 1.26 million barrels. That report was published a day later than usual because U.S. markets were closed for a public holiday Monday.
Elsewhere, Brent for October delivery fell 0.17% to USD115.08 per barrel on the ICE Futures Exchange. - investing.com