Shortly after the U.S. Department of Labor released data noting job creation in the nation hosting the world's largest economy created the smallest amount of jobs in 180 days, the price of the energy commodity dropped nearly 4 percent. Job creation was 115,000; a Bloomberg poll estimated the figure to be as high as 160,000.
"The oil market remains focused on the economy," energy research head David Greely with Goldman Sachs Group in New York told the news service. "The economic news from Europe and the U.S. has been a little disappointing. It looks like the U.S. is growing a little slower than we expected."
At 2:56 p.m. on Friday, crude oil futures fell 2.46 percent, a $2.85 loss to $113.23 per barrel.
CNN reports the sharp losses to the energy commodity on Friday detract from the significant gains achieved during the rally over the past several months. The losses also decrease the likelihood of consumers facing the ugly prospect of $5-per-gallon gas.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.