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MTECHTIPS:- Oil prices fall on global oil glut fears, weaker U.S. jobs data

MTECHTIPS:- Oil prices fall on global oil glut fears, weaker U.S. jobs data

Oil prices fell on Monday as concerns of global oversupply, a firmer dollar and lackluster U.S. nonfarm payroll data on Friday weighed on oil markets. The long Labor Day holiday in the United States may also lead to thin trading later in the session. “U.S. nonfarm payrolls turned out weaker than expected causing oil prices to fall on anticipations of a weaker economy,” Singapore’s Phillip Futures said in a Monday note. Brent crude for October delivery (LCOc1) fell 25 cents to $49.36 a barrel as of 0419 GMT (12:19 a.m. EDT), after ending the previous session down $1.07, or 2.1 percent. The European benchmark fell almost 1 percent last week. U.S. crude for October delivery (CLc1), also known as West Texas Intermediate, was down 22 cents at $45.83, after settling 70 cents down, or 1.5 percent, in the previous session. “We would think that prices should be moving downwards this week as prices would hardly find support,” Phillip Futures said in its note. U.S. jobs data on Friday showed nonfarm payrolls increased 173,000 last month compared with economists forecasts of a 220,000 gain. A surprise gain in U.S. crude stocks of 4.7 million barrels in the week to Aug. 28, the biggest one-week rise since April, added to worries of an oil glut. That was despite the number of U.S. oil rigs falling by 13 to 662 last week, according to Baker Hughes (NYSE:BHI) data, the first decline in rig counts in seven weeks. A firmer U.S. dollar (DXY) also hurt oil prices by making the commodity more expensive for holders of other currencies.

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