Oil keeps falling

Oil slipped further on Friday amid light trading as bleak US jobs data continued to weigh on the market.

Crude dropped almost 4 per cent on Thursday after closely watched non-farm payrolls data showed the jobless rate in the world’s largest economy hit a 26-year high, dashing latent hopes that commodities would continue to rally on the back of a sharp global economy.

The US Independence Day holiday meant the US market was closed and volumes of West Texas Intermediate trades were at a minute fraction of their normal level.

“We have repeatedly warned that the bullish market sentiment was overdone,” analysts at Commerzbank said. “We also believe that the market needs to be positively surprised, in order to maintain current price levels”.

Nymex WTI for August delivery fell 25 cents to $66.48 a barrel, meaning the US benchmark has now fallen almost 10 per cent since rising to an eight month high overnight on Tuesday. ICE August Brent shed 23 cents to $66.38.

Base metals also dropped, with copper losing 1 per cent to $4,985 per tonne, and aluminium falling 0.3 per cent to $1,634 per tonne.

Gold however recovered a small amount of ground, rising 0.2 per cent to $934.3 a troy ounce, as the US dollar weakened slightly, thus boosting the appeal of the dollar denominated yellow metal.