MW: Oil futures fall as investors await jobs report
FRANKFURT (MarketWatch) -- Oil futures fell below $76 a barrel, as caution dominated sentiment ahead of key data on the U.S. labor market due later in the session.
Crude oil for January delivery dropped 63 cents, or 0.8%, to $75.83 a barrel in electronic trading on Globex.
The contract earlier hit an intraday low of $75.57 a barrel.
Traders are awaiting key data on the U.S. jobs market. The Labor Department will release its nonfarm payrolls report for November at 8:30 a.m. Eastern.
Another 100,000 jobs were likely lost in November, according to the median forecast of economists surveyed by MarketWatch. That would be less than the 190,000 jobs lost in October.
The data is important for the oil market because good economic news usually boost oil prices, since they raise hopes of a swift economic recovery as well as a rebound in energy demand.
Investment demand for commodities has been very strong in recent weeks.
Commodity-sector funds, tracked by EPFR Global, posted inflows of over $1 billion for the third straight week in early December.
During the week ended Dec. 2, this fund group absorbed $1.13 billion, taking year-to-date inflows to over $24 billion, EPFR Global said.
Oil futures finished marginally lower on Thursday after a decline in a U.S. service-sector index fuelled doubts about the pace of the recovery.
"We still seem to be within the $75-$82 trading range, and it remains to be seen whether the bottom will be taken out this time around," said Edward Meir, an analyst at MF Global, in a note to clients.
Elsewhere in the commodity markets, gold futures fell more than 1%, as traders locked in some profits following the precious metal's recent record-breaking streak.
