Crude Oil Ends Higher On Weak Dollar, Jobs Data

(RTTNews) - U.S. crude oil ended higher on Friday, as the dollar trended lower against some select currencies after some soft jobs data from the U.S. showed the economy to have created fewer jobs in October than expected, despite a decline in unemployment rate.

Crude prices also reacted sharply to some unconfirmed reports of Russian troops having entered eastern Ukraine in strength.

In some soft data from the U.S., a report from the Labor Department on Friday showed weaker than expected job growth in October, although unemployment rate dropped to a new six-year low. The non-farm payroll employment rose by 214,000 jobs in October. Economists expected payrolls to expand by 235,000 with unemployment rate at 5.9 percent.

Meanwhile, investor were apprehensive over reports of Russia sending in troops into Ukraine with Kiev accusing Moscow of once again trying to create tensions in the region. Russia has, however, denied the allegations while terming it as malicious and provocative.

News reports quoting a Ukrainian defense spokesperson in Kiev said Russian troops along with 32 tanks, 16 D-30 howitzers and 30 KamAZ heavy trucks slipped into Ukraine, and was heading for the volatile Luhansk region.

Meanwhile, Nato did not confirm the development but said it was looking into the matter. However, Nato did confirm a build up of Russian troops and equipments along its eastern borders with Ukraine.

Light Sweet Crude Oil futures for December delivery, the most actively traded contract, jumped $0.74 or 0.9 percent to close at $78.65 a barrel on the New York Mercantile Exchange Friday.

Crude prices for December delivery scaled a high of $79.41 a barrel intraday and a low of $77.47.

On Thursday, crude oil futures ended down $0.77 or 1.0 percent at $77.91 a barrel, after the Organization of the Petroleum Exporting Countries projected tepid demand for its oil.

Worries over the eurozone economy weighed as well, with European Central Bank President Mario Draghi indicating the bank would soon begin buying asset-backed securities to prop up the economy.

A report from the U.S. Labor Department that showed initial jobless claims for unemployment benefits to have pulled back more than expected in the week ended November 1, helped oil to recoup some early losses.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 87.67 on Friday, down from its previous close of 88.07 late Friday in North American trade. The dollar scaled a high of 88.19 intraday and a low of 87.65.

The euro trended higher against the dollar at $1.2437 on Friday, as compared to its previous close of $1.2375 late Thursday in North American trade. The euro scaled a high of $1.2441 intraday and a low of $1.2360.

In economic news from the U.S., a report from the Labor Department on Friday showed weaker than expected U.S. job growth in October, with unemployment rate still dropping to a new six-year low. The non-farm payroll employment rose by 214,000 jobs in October compared to economist estimates for an increase of about 235,000 jobs.

Meanwhile, revised data showed employment climbed by 256,000 jobs in September and by 203,000 jobs in August, reflecting a net upward revision of 31,000 jobs.

From the eurozone, industrial production in both Germany and France rebounded in September, although the pace of recovery continued to remain weak.

Industrial production in Germany expanded 1.4 percent in September from August, when it fell by 3.1 percent, Destatis reported Friday. Economists had forecast a 2 percent rise for September.

France's overall industrial production remained flat month-over-month in September, in contrast to economists' expectations for a 0.2 percent drop and a 0.2 percent fall posted in August.

A leading index for Japan increased at a faster rate in September, results of a survey by the Conference Board showed Friday. The Conference Board's leading economic index, a measure of future economic conditions, increased 0.3 percent month-over-month in September, faster than the 0.1 percent rise in August. In July, the index had decreased 0.9 percent.