Crude oil prices have been steadily falling since yesterday in anticipation of the U.S. Non Farm payroll report as well as concerns over storm approaching the oil rigs in the Gulf of Mexico.
After the disappointing U.S. jobs data showed employment growth stagnated in August, despite expectations for at least 75,000 new jobs to be created, dollar tumbled against all major counterparts and oil prices accelerated their decline.
On Thursday, crude peaked at just under $90 a barrel and after the US jobs data today, the price plummeted to $85 by 10am New York time.
The news fuelled concerns of a very slow economic recovery in the U.S., thereby lowering demand for oil which was already in weak demand.
A tropical depression in the Gulf of Mexico where most of the oil rigs are situation, prompted many oil companies including Shell and BP to shut almost 6 percent of the area’s crude production. It is predicted by the U.S. National Hurricane Center that the storm may approach the Louisiana coast this weekend.