Dollar Hit By US Jobs – Oil Rise in Sync

As the dollar experienced a new slump because of the bleak employment data that is taking the United States by storm, oil prices have begun to rise slightly. Being the world's top consumer of energy, the U.S. crude had ended up settling at around twenty seven cents to sixty one point four dollars to a barrel, which is slightly lower compared to the previous value of sixty two point eighty two dollar per barrel. The price of London Brent crude last December settled at around eight cents at around fifty seven point thirty five per barrel.

Gains Not Enough to Perk Things Up

Even with some gains experienced last Friday, the prices still went down at around ten percent this entire week – falling to around six point seventy seven dollars in value. The price of oil has also dived to around sixty percent from the record highs of around one hundred and forty seven dollars per barrel last July, because of the continuing spread of the global economic crisis that has affected the wider economy. Such an occurrence prompted the shrinking demand of the major consumer nations as well.

The United States dollar ended up besting a basket of currencies right after the government data showed how most United States employers ended up cutting payrolls by around two hundred and forty thousand last October. Aside from this, most data shows that September had registered quite an alarming loss in jobs in the past seven years.

The Department of Labor also said that the unemployment rate of the United States also rose to six point five percent from a mere six point one percent last September, which is the highest stated figure since March of 1994. Many Wall Street economists had also previously made estimates that around two hundred thousand United States jobs had ended up being lost last October.

Worries Over Plummeting Values, Downbeat Data

Andy Lebow, a broker from New York-based company MF Global, mentioned that the future of crude oil – just like the stock market – is simply hanging on. There are people who had sought for assurances over their worries that some jobless data would end up crushing their market as well, he added. Despite the news, the data could only reflect some pretty deadbeat news. The crude oil markets could actually look towards the idea that losing jobs will end up creating a profound impact on the demand for petroleum.