Current Oil Price Declines on Employment Data

The current oil price declines as excitement over the strong U.S. employment report during the past week faded.

On the New York Mercantile Exchange, the U.S. benchmark crude for delivery in June was 44 cents lower to a crude price per barrel of $95.17 during mid-afternoon electronic trading in Europe.

During the last trading day of the past week, the contract gained $1.62 per barrel following a report that showed a surprisingly solid increase of 165,000 jobs in the U.S. for the month of April. The rise pushed down the jobless rate to its lowest in four years at 7.5 percent, suggesting that the recovery of the U.S. economy may be getting some momentum.

Oil demand tends to rise with economic improvement as factory production rises, individuals drive more and businesses utilize more fuel to transport goods.

Prices had temporarily increased in the early parts of the trading day on reports of a military strike by the Israel against Syria, causing worries of a widespread conflict in the oil-rich region of the Middle East. However, markets retreated as trading in Europe started.

On London’s ICE Futures Exchange, Brent, the benchmark used to assign prices to international types of oil, was 14 cents lower to $104.04 a barrel.

In other energy trading on the NYMEX, wholesale gasoline shed 0.01 cent to its current price of $2.82 per gallon. Heating oil stayed unchanged at $2.88 per gallon. And the price of natural gas shed 0.8 cents to $4.033 per thousand cubic feet.