June's low job creation rates and higher than expected unemployment numbers pushed down oil futures on Friday, Bloomberg reports.
Released by the U.S. Labor Department on Thursday, the job creation and unemployment rate figures temper enthusiasm for the global recovery from the recession as the U.S. is the world's biggest economy. The reduced optimism also minimizes demand for fuel.
"The employment data clearly represents a real setback for the economy," said partner John Kilduff of Again Capital in New York, a hedge fund with an energy focus. "These numbers go right to the heart of the demand picture for gasoline and other fuels."
At 4:14 p.m. on Friday, crude oil futures slipped 0.23 percent, a 27 cent drop to $118.32 per barrel.
Analyst Dominick Chirichella of the Energy Management Institute in New York suggested a "double-dip" recession is a possibility, according to Dow Jones Newswires.
Oil market observers typically watch the Labor Department's unemployment reports as a reduced jobless rate indicates more drivers, more oil used and increased consumption of oil, all of which is of note considering the U.S. is the globe's top consumer of oil.
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