SINGAPORE, July 2 (Reuters) - U.S. crude edged lower to
trade near three-week lows under $73 after a spate of weak
manufacturing data reflected slowing global economic growth,
leaving investors looking to Friday's U.S. unemployment report
for further direction.
FUNDAMENTALS
* West Texas Intermediate (WTI) for August shed 6 cents to
$72.89 a barrel by 0030 GMT, after touching $72.05 on Thursday,
the lowest intraday price since June 9. Front-month WTI has
declined every day this week, with the biggest drop on
Thursday, when it slumped 3.5 percent to $72.95.
* Manufacturing growth cooled around the world in June,
with China hitting its slowest pace in more than a year and
growth in the United States and Europe also easing -- further
evidence that the global economic recovery is moderating.
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* Nonfarm payrolls probably fell in June for the first time
this year, down by 110,000, as many of the 411,000 temporary
workers hired in May to complete the census were laid off.
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* New claims for U.S. jobless benefits unexpectedly rose
last week, while growth in the manufacturing sector slowed in
June, heightening fears the country's economic recovery was
stalling. []
The ISM report also disappointed markets, as did data
showing pending sales of previously owned U.S. homes plunged a
record 30 percent in May to an all-time low.
* Energy provider Genscape said on Thursday that Cushing,
Oklahoma crude stocks fell 285,000 in the week to Tuesday.
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The recent slip from record high storage at the Cushing hub
has helped narrow the price spread between the front-month and
near-month U.S. crude contracts <CL-1=R>, leaving it at 51
cents on Thursday, based on settlement prices.
* After helping drive crude prices to above $79 on Monday,
Hurricane Alex made landfall in Mexico on Thursday, sparing
U.S. oil facilities near its path. []
Producers on Thursday were already restarting some of the
421,350 barrels per day of oil output, about a quarter of Gulf
of Mexico output, shut as a precaution. []
MARKETS NEWS
* The euro held near five-week highs against the U.S.
dollar Friday after rallying three whole cents as speculators
were squeezed out of short positions ahead of the U.S. jobs
report. []
* Japan's Nikkei average edged up 0.4 percent on Friday
after five straight days of falls as charts showed the
benchmark deeply oversold. []
* U.S. stocks fell on Thursday as manufacturing and labor
market data heightened fears of a double-dip recession.
[]
DATA/EVENTS
* The following data is expected on Friday: (GMT)
- U.S. June non-farm payrolls 1230
- U.S. May factory orders 1400
- U.S. May durable goods-R 1400
RELATED NEWS
* Australia ended a damaging dispute with global miners on
Friday by dumping its "super profits" tax for a lower resources
rent tax regime backed by key global miners, freeing the way
for an early election. []
PRICES
Oil prices as of 0033 GMT
Contract Mnth Price Change Day ago pct MA-20*
NYMEX Contracts
US Crude AUG0 $72.90 -0.05 -$2.68 -3.54% $75.67
Heat Oil JUL0 0.00 +0.00 -3.96 -1.96% 205.26
RBOB AUG0 199.70 -0.06 -6.28 -3.05% 208.83
Natgas AUG0 $4.832 -0.022 +$0.238 +5.16% $4.829
ICE Contracts
Brent AUG0 $72.26 -0.08 -$2.67 -3.56% $75.90
Gasoil JUL0 $616.25 -0.50 -$28.00 -4.34% $654.24
Note: U.S. heating oil and RBOB gasoline contracts listed in
cents per gallon.
* = 20-day moving average for continuation month.
(Reporting by Alejandro Barbajosa; Editing by Clarence
Fernandez)
