SH: Commodities: Oil steams past $90 after robust jobs data
LONDON (SHARECAST) - Oil prices settled above $90 a barrel on Wednesday as surprisingly strong jobs figures underlined an increasingly optimistic view of the US recovery.
Crude for February delivery drove 92 cents higher to settle at $90.30 a barrel on the New York Mercantile Exchange.
Two separate reports revealed an unexpectedly robust picture of the US jobs market. Outplacement firm Challenger Gray & Christmas said the number of job cuts announced by US companies in 2010 was down 59% on the year before at 530,000. That was the lowest number for any year since 1997.
Meanwhile numbers from payroll processor ADP showed a record 297,000 increase in private-sector employment between November and December.
The reports set an upbeat tone ahead of Friday’s monthly jobs report. Economists predict that employers increased payrolls by 135,000 in December after a 39,000 rise in November.
While the more optimistic outlook about the economy in 2011 and robust jobs figures pushed oil prices higher on Wednesday, it wiped the shine off gold prices.
Gold for February delivery declined $5.10 to settle at a three week closing low of $1,373.70 an ounce on the Comex division of the New York Mercantile Exchange.
