Crude Oil Falls After ADP Says U.S. Job Losses Top Estimates

By Grant Smith

Sept. 2 (Bloomberg) -- Oil fell for a third day after a private survey showed U.S. companies shed more workers than expected in August, signaling consumer spending in the world’s largest crude consumer may remain weak.

The U.S. Energy Department will probably say later today crude stockpiles dropped last week, according to a Bloomberg survey. Supplies are 12 percent higher than a year ago after the recession cut demand, which normally accelerates in the fourth quarter.

“The basic picture still remains on the fundamental side rather gloomy,” said Leo Drollas, deputy director at the Centre for Global Energy Studies in London. “Stocks are still high, but they are falling. In the U.S. there are tentative signs things have bottomed out, but that means they’re scraping along the bottom.”

Crude oil for October delivery fell as much as 45 cents, or 0.7 percent, to $67.60 a barrel in electronic trading on the New York Mercantile Exchange. The contract traded at $67.80 as of 1:55 p.m. London time. Oil in New York has traded between $65 and $75 a barrel since July 31.

To contact the reporters on this story: Grant Smith in London at gsmith52@bloomberg.net