Crude Oil Tumbles To End Below $99

(RTTNews) - U.S. crude oil plummeted to end at a near four-month low Tuesday, as demand growth concerns grew after some soft jobs data out of the U.S. Oil prices were under pressure on the downbeat data with the dollar weakening against some major currencies. Prices were already under strain after a delayed official weekly report from the Energy Information Administration yesterday showed crude oil stockpiles in the U.S. to have increased a week ago.

The soft jobs data also strengthened investor expectations the Federal Reserve would likely continue to maintain its $85 billion monthly quantitative easing program, with no cuts foreseen in the near future.

Employment in the U.S. increased much less than expected in September, a Labor Department report showed Tuesday. Despite the weaker than expected job growth, unemployment rate in September dropped to 7.2 percent.

Light Sweet Crude Oil futures for December delivery, the most actively traded contract, plummeted $1.38 or 1.4 percent to close at $98.30 a barrel on the New York Mercantile Exchange Tuesday.

Crude prices for December delivery scaled a high of $100.30 a barrel intraday and a low of $98.15.

Crude Oil futures for November delivery plunged $1.42 or 1.4 percent to close at $97.80 a barrel.

Yesterday, oil settled below the $100-mark for the first time in more than three months on demand growth concerns after a delayed official weekly oil report from the Energy Information Administration showed crude oil stockpiles in the U.S. to have increased more than expected a week ago.

The Energy Information Administration on Monday said U.S. crude oil inventories gained 4.0 million barrels, while gasoline stocks shed 2.60 million barrels in the week ended October 11. Analysts expected crude oil inventories to gain 2.75 million barrels last week.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.21 on Tuesday, down from 79.69 late Tuesday in North American trade. The dollar scaled a high of 79.79 intraday and a low of 79.20.

The euro traded higher against the dollar at $1.3787 on Tuesday, as compared to its previous close of $1.3681 late Monday in North America. The euro scaled a high of $1.3789 intraday and a low of $1.3664.

In economic news from the U.S., the Labor Department said said non-farm payroll employment increased by 148,000 jobs in September compared to economist estimates for an increase of about 180,000 jobs. Despite the weaker than expected job growth in September, the unemployment rate dipped to 7.2 percent from 7.3 percent in August.

Construction spending in the U.S. rose more than expected in August, a Commerce Department report showed Tuesday. Construction spending rose 0.6 percent to a seasonally adjusted annual rate of $915.1 billion in August from the revised July estimate of $909.4 billion. Economists expected spending to increase by about 0.4 percent.

Elsewhere, the U.K. budget deficit narrowed to GBP 11.1 billion in September from GBP 12.1 billion in the corresponding period last year, the Office for National Statistics reported. Public sector net borrowing, excluding financial interventions, also came in below consensus of GBP 11.3 billion.

Switzerland's trade surplus beat expectations in September, latest data from the Federal Customs Administrations showed. The trade surplus for September was CHF 2.5 billion compared with an expected CHF 2 billion surplus. In the July-September period, the trade surplus was CHF 6.9 billion.