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Oil prices advanced yesterday due to a solid US jobs report and continued doubt about the prospects for a full recovery of Libyan exports.
US benchmark West Texas Intermediate crude for May delivery rose 85 cents to finish at $101.14 a barrel on the New York Mercantile Exchange. European benchmark Brent oil for May delivery increased 57 cents to $106.72 a barrel in London.
The US Department of Labor reported the US economy added 192,000 jobs in March, essentially meeting expectations and suggesting a continuation of the trend of slow but steady improvement in the labour market.
Gene McGillian, a broker and analyst at Tradition Energy, said the jobs report, which also included an upward revision to the estimate for jobs added in January and February, “created some positive sentiment’’.
Libyan exports
Traders also continue to doubt when Libyan exports will be restored to normal levels after a months-long blockade of key oil terminals due to a dispute between the central government and federalist leaders.
The consultancy Eurasia Group rated a lasting recovery to the Libyan exports “highly unlikely” due to the dynamics of the dispute.
McGillian expects the US oil contract to continue to “pivot around $100” given the supply-and-demand fundamentals.
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