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Crude Relinquishes Gains After US Payroll Data

OIL

Crude has started to relinquish its earlier gains following above expectation nonfarm payroll data which has caused a spike in the US dollar.

  • May nonfarm payrolls came in at 272k, above the 180k consensus.
  • Consequently, the Bloomberg dollar spot index has jumped to a rise of 0.42% on the day, which will make crude relatively more expensive.
  • The stronger US data will bring into question the feasibility of near-term interest rate cuts. That could have a longer-term impact on expectations for oil demand.
  • Brent AUG 24 up 0.1% at 79.94$/bbl
  • WTI JUL 24 up 0.2% at 75.7$/bbl

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