Crude oil trading resulted in futures for the commodity rising to their highest value in one month on Feb. 6.
Brent crude contracts on the ICE Futures exchange rose 0.9 percent to reach $107.19 a barrel, according to The Wall Street Journal. Futures for light, sweet crude gained 0.5 percent to rise to $97.84 per barrel on the New York Mercantile Exchange.
Strong economic data pushes oil higher
The gains in both of these contracts were attributed to data pointing to improvement in the U.S. economy, the media outlet reported. Government data indicated that during the fourth quarter of last year, non-farm labor productivity enjoyed a 3.2 percent increase.
In addition, those who engage in crude oil trading were supplied with data indicating that during the week that ended on Feb. 1, the number of initial applications for jobless benefits fell short of the predictions of economists participating in a Bloomberg poll. The market experts who took part in this survey provided a median forecast of 335,000 of these claims being made, and 331,000 of these applications were submitted.
Labor market shows signs of improvement Scott Brown, who works for Raymond James & Associates Inc. as chief economist, told the news source that this decline in claims was caused by employers adding more workers. If this trend continues, it could provide support to consumer spending, which is a crucial component of gross domestic product.
“When you look at the labor market, job destruction has been very, very low,” Brown told the news source. He had predicted that during the latest week, 330,00 of these applications would be made. “It’s really been an issue of new hiring. That hiring, we think, is gradually picking up.”
The job market showed some signs of improvement when the U.S. Department of Labor released its monthly report on Feb. 7. The data released by the government agency revealed that in January, there was an increase in net positions of 113,000. This figure fell short of the 189,000 gain predicted by economists taking part in a poll conducted by The Wall Street Journal.
Fed stimulus key
It is important to note that these figures could easily have an impact on the Federal Open Market Committee and the schedule that it uses for tapering. The policymakers of the Fed have cut the pace of monthly bond purchases to $65 billion this month.
This stimulus could be reduced further still in the event that the current economic data supports such a move. Any changes that are made to the existing policies of the Fed could easily have an impact on crude oil trading.
The key impact that this central bank stimulus could have on such activity was noted by Carl Larry, analyst for Oil Outlooks & Opinions, the media outlet reported. He noted that both the policies of the Fed, and also the state of economic conditions in the U.S., “all play into the demand picture for oil.”
The next policy meeting of the central bank is not going to happen until about halfway through March. It will be impossible to tell how such decision making is impacted by the economic data that is released.
Larry told the news source that “It’s going to be an unsure six weeks.”
Another factor that could potentially make the state of the economy even less clear is the impact of the cold weather, according to Bloomberg. Warnings about winter storms were issued after the Eastern region of the U.S. was affected by a wave of polar air.
The persistent cold weather is another factor that could potentially have an influence on crude oil trading.
Crude oil trading resulted in futures for the commodity rising to their highest value in one month on Feb. 6.
Brent crude contracts on the ICE Futures exchange rose 0.9 percent to reach $107.19 a barrel, according to The Wall Street Journal. Futures for light, sweet crude gained 0.5 percent to rise to $97.84 per barrel on the New York Mercantile Exchange.
Strong economic data pushes oil higher
The gains in both of these contracts were attributed to data pointing to improvement in the U.S. economy, the media outlet reported. Government data indicated that during the fourth quarter of last year, non-farm labor productivity enjoyed a 3.2 percent increase.
In addition, those who engage in crude oil trading were supplied with data indicating that during the week that ended on Feb. 1, the number of initial applications for jobless benefits fell short of the predictions of economists participating in a Bloomberg poll. The market experts who took part in this survey provided a median forecast of 335,000 of these claims being made, and 331,000 of these applications were submitted.
Labor market shows signs of improvement
Scott Brown, who works for Raymond James & Associates Inc. as chief economist, told the news source that this decline in claims was caused by employers adding more workers. If this trend continues, it could provide support to consumer spending, which is a crucial component of gross domestic product.
“When you look at the labor market, job destruction has been very, very low,” Brown told the news source. He had predicted that during the latest week, 330,00 of these applications would be made. “It’s really been an issue of new hiring. That hiring, we think, is gradually picking up.”
The job market showed some signs of improvement when the U.S. Department of Labor released its monthly report on Feb. 7. The data released by the government agency revealed that in January, there was an increase in net positions of 113,000. This figure fell short of the 189,000 gain predicted by economists taking part in a poll conducted by The Wall Street Journal.
Fed stimulus key
It is important to note that these figures could easily have an impact on the Federal Open Market Committee and the schedule that it uses for tapering. The policymakers of the Fed have cut the pace of monthly bond purchases to $65 billion this month.
This stimulus could be reduced further still in the event that the current economic data supports such a move. Any changes that are made to the existing policies of the Fed could easily have an impact on crude oil trading.
The key impact that this central bank stimulus could have on such activity was noted by Carl Larry, analyst for Oil Outlooks & Opinions, the media outlet reported. He noted that both the policies of the Fed, and also the state of economic conditions in the U.S., “all play into the demand picture for oil.”
The next policy meeting of the central bank is not going to happen until about halfway through March. It will be impossible to tell how such decision making is impacted by the economic data that is released.
Larry told the news source that “It’s going to be an unsure six weeks.”
Another factor that could potentially make the state of the economy even less clear is the impact of the cold weather, according to Bloomberg. Warnings about winter storms were issued after the Eastern region of the U.S. was affected by a wave of polar air.
The persistent cold weather is another factor that could potentially have an influence on crude oil trading.
The post Crude Oil Trading Pushes Futures to 1-Month High appeared first on | HY Markets Official blog.
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