US fears send oil price tumbling

US employers hired at a disappointing rate in June, upping the pressure on the Federal Reserve to take more action to boost the economy of the world’s biggest oil consumer.

“People were looking for something better, some indicator that may show we’re crawling out of this trough,” said Nigel Gault, chief US economist at IHS Global Insight.

“But everything here says we’re still in it.”

Monetary easing by central banks in China, the eurozone and Britain on Thursday had already underscored concerns over the fragility of the global economy that has muddied the demand outlook for commodities.

“The latest jobs data also underscores the weakness that has emerged in the global economy,” said Gene McGillian of Tradition Energy, Stamford, Connecti- cut.

“With the economies of China and Europe also weakening, this spells lower global demand for energy.”

Norway’s government will wade into a dispute between offshore oil workers and employers over pensions to force an end to a strike that has oil markets on edge.

The strike, which began on June 24, has already slowed crude exports and cut Norway’s oil production by around 13 per cent and its gas output by around 4 per cent. Norway’s oil industry upped the ante on Thursday, calling for a lockout on July 9.