Oil ex­tends gains in Asia amid slow­down in pro­duc­tion

The China Post - - BUSINESS INDEX & -

Oil ex­tended gains in Asia Mon­day as a de­cline in U.S. drilling pointed to a slow­down in pro­duc­tion, but a weak job re­port in the world’s top econ­omy kept a lid on gains.

Crude surged in New York af­ter data showed the num­ber of ac­tive rigs in the United States fell to a five-year low of 614 last week, help­ing ease con­cerns over the global over­sup­ply that has de­pressed prices.

Oil con­tin­ued to rally in Asia on Mon­day, although op­ti­mism was tem­pered by poor U.S. un­em­ploy­ment data.

The U.S. La­bor Depart­ment said Fri­day that jobs growth in the world’s big­gest econ­omy and top oil con­sumer fal­tered in Septem­ber and the la­bor mar­ket weak­ened across the board.

This stoked con­cerns about de­mand for the com­mod­ity at a time when growth in main­land China, the world’s num­ber two econ­omy and ma­jor energy con­sumer, is also slow­ing down.

The U.S. econ­omy added a dis­ap­point­ing 142,000 jobs dur­ing the month, well be­low an­a­lyst es­ti­mates, and the Au­gust jobs data was re­vised sharply lower to 136,000, sur­pris­ing an­a­lysts.

An­a­lysts said the soft num­bers could prompt the U.S. cen­tral bank to push back its first in­ter­est rate hike in al­most a decade, al­ready de­layed by China-driven tur­moil in global fi­nan­cial mar­kets.

In af­ter­noon Asian trade, U.S. bench­mark West Texas In­ter­me­di­ate for Novem­ber de­liv­ery was up 29 cents to US$45.83 and Brent crude for Novem­ber jumped 23 cents to US$48.36 a bar­rel.

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