Brent Oil Rises Above $118

Brent crude rose above $118   a barrel last Thursday reflecting caution among investors and Europe renewed doubts about the state of the global economy.

Oil slid the most in two weeks on Wednesday as investors sold off commodities and equities after data showed hiring by U.S. private firms in April was the slowest since September.

“Risk markets are overall very cautious ahead of this non-farm payroll data, that’s why we’re seeing reduced volumes and a few bets being taken off the table,” said Ben Le Brun, market analyst at OptionsXpress in Sydney.

Asian shares and other commodities like copper slipped on the back of the disappointing economic data from both sides of the Atlantic, as focus turns to the U.S. non-farm payroll data due out on Friday.

Brent crude for June delivery edged up five cents to 118.25 dollars per barrel, after falling more than one per cent in the prior session.

U.S. oil eased nine cents to 105.13 dollars after dropping nearly one per cent on Wednesday.

Brent and U.S. crude’s percentage losses in the previous session were the biggest since mid-April.

U.S. businesses outside the farm sector are expected to have added 170,000 jobs last month, according to a media survey after rising a meagre 120,000 in March.

Disappointment over the March number, which was less than half the average monthly increase in the prior three months, pointed to sputtering growth in the world’s top economy, fuelling a sell-off in risky assets last month.

“If the figure is significantly weaker on Friday then it raises concerns about some moderation in fairly modest rate of employment growth in the U.S.,” said Ric Spooner, chief market analyst at CMC Markets.

“It would not be taken well by risk markets.”

U.S. crude oil stocks rose 2.84 million barrels last week to 375.86 million barrels, more than forecast, and hitting the highest level since September 1990.

Domestic crude stocks have ballooned more than 29 million barrels since late March, the biggest six-week increase since February 2009, data from the U.S. Energy Information Administration showed.