Brent drops below $ 83, but US jobs data could buoy prices
Reuters: Brent crude dropped for the second straight session on Friday, dragged below $83 by worries over the strong US dollar.
The dollar held near a four-year high against a basket of major currencies, with its near-term fortunes hinging on whether US jobs data will add to or temper optimism about the US economyâ€™s outlook.
A stronger greenback makes it more expensive for holders of other currencies to buy dollar-denominated commodities.
â€śThe market is assessing itself ahead of non-farm payrolls. More people employed means more oil demand,â€ť said Jonathan Barratt, Chief Investment Officer at Sydneyâ€™s Ayers Alliance.
Brent had dropped 52 cents to $82.34 a barrel by 0625 GMT after falling as much as 90 cents the session before. It has fallen around 4% so far this week.
US crude eased 42 cents to $77.49 a barrel.
â€śI do think weâ€™ve reached an area where some people are happy for the market to trade lower, but when I look at it, itâ€™s close to its lowest,â€ť Barratt said.
Brent prices on Wednesday gained slightly and US crude jumped nearly 2% after inventory data showed US crude stocks were just a fifth of levels forecast last week.
A meeting of OPEC ministers on 27 November to discuss how to react to the drop in oil prices could give direction to oil prices, said Mark Keenan, head of commodities research at Societe Generale in Singapore.