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Oil prices slip as US dollar strengthens on jobs report

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Oil prices dipped slightly in New York on Friday as the US dollar rose on exchange markets following robust hiring numbers from the US government.

[NEW YORK] Oil prices dipped slightly in New York on Friday as the US dollar rose on exchange markets following robust hiring numbers from the US government.

On the New York Mercantile Exchange, a barrel of West Texas Intermediate benchmark crude for September delivery fell 13 US cents to close at US$41.80.

In London, North Sea Brent for October delivery fell 2 US cents to US$44.27 a barrel on the Intercontinental Exchange.

The US dollar, the strength of which can influence demand for US dollar-denominated oil futures, rose against the euro and the British pound on Friday.

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Market voices on:

US government figures showed employers added more than 250,000 jobs in July, increasing the chances of an interest rate hike in 2016 and likely adding to the appeal of US currency.

"It's not unexpected to see prices are moving lower given the last two days of strong push higher, in combination with the stronger dollar given the jobs report," Matt Smith of ClipperData told AFP.

"We've also just had the rig count this afternoon with rigs increasing for six consecutive weeks," he added.

"But really I think this has less to do with it and more with the movement on the dollar and some positioning due to that."

AFP

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