Oil futures fell by the biggest weekly amount in a month amidst news that the US Unemployment rate increased to its highest level this year. WTI crude futures fell by 0.18 percent to USD $ 100.22 a barrel.
The US Labour Department stated that the number of payrolls increased by only 54,000 in May, the smallest increase this year. The unemployment rate from 9 to 9.1 percent. For the first time in almost seven months, factories in the US cut down on the number of people employed by 5000, whereas the number of new jobs added in the retail, leisure and state and local governments also decreased in May. Further compounding this pessimistic outlook was a revised report from the US Commerce Department, which stated that the US economic growth in the first quarter of this year was a meager 1.8 percent per annum, down from the growth rate of 3.1 percent per annum in the previous quarter. This news has increased speculation about a decreased demand of oil in the US during the summer season, which has led to a fall in the price of oil futures.
Meanwhile, Brent crude futures increased by 0.26 percent to USD $ 115.84 a barrel. The Euro appreciated against the Dollar, which has resulted in commodities priced in the Greenback, such as Brent futures, appear more attractive to European investors. Thus, this increased demand for Brent futures led to its price hike.