BLBG: Crude Oil Futures Drop to Two-Week Low as U.S. Payrolls Fall
Sept. 2 (Bloomberg) -- Crude oil fell to a two-week low as reports on job losses and a lower-than-forecast gain in factory orders spurred concern that the economy of the world’s biggest energy-consuming country is struggling to recover.
Oil dropped for a third day as ADP Employer Services reported a 298,000 decline in the number employed. A 250,000 decrease was forecast, according to the median estimate of 32 economists in a Bloomberg News survey. Orders placed with U.S. factories gained 1.3 percent in July, the Commerce Department said today. Factory orders were forecast to rise 2.2 percent.
“Unless there is sustained positive economic news there is no reason for prices to run above $75,” said Chip Hodge, who oversees a $9 billion natural-resource bond portfolio as managing director at MFC Global Investment Management in Boston. “Until demand really picks up or supplies are disrupted the key driver will remain the economy.”
Crude oil for October delivery fell 32 cents, or 0.5 percent, to $67.73 a barrel at 11:48 a.m. on the New York Mercantile Exchange. Futures touched $67.05, the lowest since Aug. 18.
Oil futures have ranged between $65 and $75 since July 31.
To contact the reporter on this story: Mark Shenk in New York at mshenk1@bloomberg.net.
