Traders see demand in decline with unemployment rate higher

Nov. 2, 2012 at 6:33 PM

WASHINGTON, Nov. 2 (UPI) -- Crude oil prices took a jolt Friday, dropping under $85 per barrel after a Labor Department report that said the U.S. unemployment rate rose in October.

The rate rose from 7.8 percent to 7.9 percent, in line with expectations, but enough to put a backspin on oil prices. Higher unemployment implies demand will decline.

West Texas Intermediate crude oil for December delivery gave up $2.29 cents to $84.80 per barrel on the New York Mercantile Exchange.

Reformulated gasoline in recent trading added 0.044 cents to $2.578 a gallon. Home heating oil shed 0.8 cents to hit $2.9554 a gallon.

Natural gas lost 0.5 cents to reach $3.549 per million British thermal units.

At the pump, the average price for a gallon of regular unleaded gasoline was $3.496, down from Thursday's $3.507, AAA reported.

Related UPI Stories
Latest Headlines
Trending Stories
Nobel Prize in Chemistry awarded to DNA cell repair pioneers
Priest suspended after defending pedophilia in TV interview
U.S. asks how Islamic State militants got so many Toyotas
At least 17 dead in Carolinas, more flooding expected
NASA releases thousands of Apollo mission photos on Flickr