Crude oil rebounded after the release of an optimistic Non-farm payroll report that indicated more jobs were created in the U.S than predicted, easing fears that the economy was heading into another recession.
Payrolls rose by 117,000 workers, more than the 85,000 forecasted, and the unemployment rate fell to 9.1 percent.
The speculation is that a domino effect should occur now if jobs increase, consumer spending will increase, resulting in increased manufacturing and so on, which consequently should increase fuel demand. The United States is the world’s largest economy in the industrialized world and the biggest consumer of crude oil.
After hitting the lowest level in a year, it is now a good buying opportunity for crude, and this will certainly boost prices further.
Within a minute of the release of the jobs data, crude oil jumped to $88.29 from 85.53. It had reached its lowest level since November 2010 early in the European session, touching $82.89.