Oil prices eased in Asian trade on Friday as investors turned cautious ahead of U.S. jobs data later in the day which is expected to play into the Federal Reserve's decision on the timing of any U.S. rate hike.
Oil prices eased in Asian trade on Friday as investors turned cautious ahead of U.S. jobs data later in the day which is expected to play into the Federal Reserve’s decision on the timing of any U.S. rate hike.
Oil stuck to a narrow range in thin trading, with Chinese markets closed as second day for a holiday to commerate the end of World War Two.
“There’s been a little bit of up and down and range-bound movement which has all the hallmarks of a market marking time,” said Ben Le Brun, market analyst at Sydney’s OptionsXpress.
Brent crude for October delivery fell 21 cents to $50.47 a barrel as of 0156 GMT, after ending the previous session 18 cents higher.
U.S. crude for October delivery was down 20 cents at $46.55 a barrel, after settling 50 cents higher in the previous session.
U.S. non-farm payroll and unemployment data for August is due for release at 1230 GMT.
U.S. fiscal policymakers are likely to use the jobs data as part of their assessment on whether to raise interest rates this year at the next meeting of the U.S. Federal Reserve federal open market committee on Sept. 16-17.
A strong dollar remained a “clear and present danger” for the oil markets, Le Brun said. A firm greenback makes oil and other commodities priced in dollars more expensive for holders of other currencies.
Investors are also keeping an eye on U.S. oil rig data due later on Friday and any drop in rig numbers could bolster oil’s price outlook.
BNP Paribas lowered its forecasts for oil prices on Thursday to $56 per barrel for 2015 and $62 for 2016 for Brent, and to $51 per barrel in 2015 and $56 in 2016 for U.S. crude.