WTI crude oil has risen about 1.5% this morning, to around $101.28/barrel, on the news that US employers added 206,000 new jobs in November and the US Federal Reserve, the European Central Bank, and other central banks have reached an agreement that adds dollar liquidity to global financial markets.
The ADP national employment report for November noted that small businesses added 110,000 jobs in November and that services jobs rose by 178,000 in the month:
“This month’s jobs figures show positive growth in all major sectors of the economy and are in line with the recent drop in the national unemployment rate and weekly jobless claims,” said Carlos Rodriguez, President and CEO of ADP. “Despite fiscal uncertainties here and abroad, owners of small- and medium-sized businesses found ways to grow and hire in November. As in previous months, service providers led the way in job creation.”
The agreement among the world’s central banks also eased concerns related to the European financial crisis as the Eurozone enters what many regard as a 10-day window during which members must reach a permanent agreement or be prepared for an ugly failure of the euro.
Weighing in against the price of crude is the US EIA’s report that US stocks grew by 3.9 million barrels last week, a huge leap over expectations of a 500,000 barrel drawdown. WTI reached a high of $101.74/barrel earlier this morning. Brent crude is up $0.80, at $111.62, a differential of about $10/barrel to WTI. The price of WTI should remain in check today, given the massive inventory build.
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