MTECHTIPS;-Crude turns lower on U.S. employment report anticipation
Crude oil futures traded lower, as traders anticipate the release of U.S. employment numbers and economically bearish words by European Central Bank President Mario Draghi pressured the commodity.On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD86.03 a barrel during European trade, falling 0.24%. The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 1 fell by 25,000 to a seasonally adjusted 370,000, compared to expectations for a decline of 15,000 to 380,000.
Sentiment found some support after U.S. President Barack Obama said that a deal to avert the so-called fiscal cliff of year-end tax hikes and spending cuts was possible in “about a week” if Republicans compromise on taxes. The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand. But markets were jittery after ECB President Draghi on Thursday said that risks to the outlook remain weighted to the downside. Policymakers now expect 2012 gross domestic product to shrink between 0.4% and 0.6%, while GDP is expected to come in between a 0.9% contraction and growth of 0.3% in 2013.