Oil price drops to near US$92 a barrel after previous day's jump
January 14, 2014, 12:03 am TWN
AP--Oil prices fell Monday after a big jump in the previous trading session that was sparked by expectations the Fed might delay stimulus reduction.
Benchmark U.S. oil for February delivery was down 36 cents to US$92.36 a barrel at 0825 GMT in electronic trading on the New York Mercantile Exchange. The contract surged US$1.06 to settle at US$92.72 a barrel on Friday.
The U.S. added just 74,000 thousand jobs in December, way below market expectations of 196,000 jobs. The unemployment rate fell from 7.0 percent to 6.7 percent, but it was mostly because of a drop in the number of people seeking work.
The Fed said in December it would start cutting back its stimulus by US$10 billion a month, but further cuts would depend on how many new jobs were added in coming months.
Brent crude, used to set prices for international varieties of crude, eased 18 cents at US$106.43 a barrel on the ICE exchange in London.
In other energy futures trading on Nymex:
— Natural gas was up 7 cents to US$4.09 per 1,000 cubic feet.
— Wholesale gasoline shed 0.3 cent to US$2.667 a gallon.
— Heating oil was down 0.4 cent to US$2.937 a gallon.