(Updates prices, changes comment)
* Oil drops to lowest since Nov before rebounding on OPEC
* Safe-haven bonds, yen and gold stable after safe-haven
* Euro highest since Nov ahead of French election
* U.S. non-farm payrolls beat expectations, 211,000 jobs
By Rodrigo Campos
NEW YORK, May 5 Crude oil bounced back from its
lowest level since November on Friday on the likelihood key
producers could extend output cuts beyond an agreed-on June
deadline, while a global stocks index set a fresh record high as
corporate earnings remained strong.
Markets were rattled overnight as crude stumbled further,
its weekly decline close to 10 percent at one point, but
comments from Saudi Arabia's OPEC governor Adeeb Al-Aama helped
put a floor under oil prices.
"There's an emerging consensus among participating countries
on the need to extend the production agreement reached last
year," the official told Reuters.
OPEC, Russia and other producers have agreed to curb
production by 1.8 million barre1ls per day until June 30. OPEC
ministers next meet on May 25.
Better-than-expected U.S. non-farm payrolls data showed jobs
growth rebounded sharply last month with 211,000 added and the
national unemployment rate down to near a 10-year low of 4.4
On Wall Street, the energy sector was posting its
strongest daily showing since late March while the benchmark
S&P, despite the strong payrolls report, remained in the tight
range of the past two weeks.
"OPEC is going to continue the cuts. The question is, is
that enough to keep oil prices at a level that is good for
business and for producers?" said Quincy Krosby, market
strategist at Prudential Financial in Newark, New Jersey.
"Today it has helped to the overall turn on the markets."
The Dow Jones Industrial Average rose 20.29 points,
or 0.1 percent, to 20,971.76, the S&P 500 gained 4.72
points, or 0.20 percent, to 2,394.24 and the Nasdaq Composite
added 10.05 points, or 0.17 percent, to 6,085.38.
The pan-European FTSEurofirst 300 index rose 0.69
percent and MSCI's gauge of stocks across the globe
gained 0.36 percent after touching a record
Emerging market stocks lost 0.24 percent. Overnight, MSCI's
broadest index of Asia-Pacific shares outside Japan
closed 0.62 percent lower.
Both Brent and U.S. crude fell almost 4
percent overnight on mounting concerns about oversupply. But
weekly declines of close to 10 percent were all but halved
during trading hours in New York.
Concerns over a slowdown in China have hit other
commodities, with Chinese iron ore futures down more
than 10 percent to this week's low and copper touching
its lowest since January.
Prudential's Krosby said the slide in commodities would not
necessarily drag other markets lower "as long as you accept the
thesis that it is all about supply."
"But if you add a slowdown in China," she said, "it becomes
a demand story.
U.S. crude rose 1.65 percent to $46.27 per barrel
and Brent was last at $49.14, up 1.57 percent on the
"The energy complex is slowly succumbing to an opinion that
this year’s OPEC production cuts have been ineffective," Jim
Ritterbusch, president of Chicago-based energy advisory firm
Ritterbusch & Associates, said in a note.
"We feel that the (OPEC) cartel has come to a fork in the
road in which the current agreement will be abandoned or steps
will need to be taken to double down on current efforts by
increasing production curtailments."
Copper rose 0.76 percent to $5,585.00 a tonne.
Spot gold added 0.1 percent to $1,228.12 an ounce.
U.S. gold futures fell 0.02 percent to $1,228.30 an
The U.S. dollar hit its lowest level in roughly six months
against the euro at $1.0999. The strong U.S. jobs data failed to
shake investors' bullishness toward the euro ahead of the second
round of France's presidential election.
Analysts said traders are anticipating the euro will rise
above a technical barrier of $1.10 if, as expected, centrist
Emmanuel Macron defeats anti-EU candidate Marine Le Pen in
The dollar index fell 0.15 percent, with the euro
up 0.05 percent to $1.0989.
The Japanese yen weakened 0.14 percent at 112.62 per dollar,
while Sterling was last trading at $1.2965, up 0.35
percent on the day.
The Canadian dollar strengthened 0.44 percent versus the
greenback at C$1.37 per dollar, after 10 consecutive sessions of
The loonie, the Australian dollar and Russia's rouble
, among the world's most commodity-sensitive currencies,
were all sent spinning overnight but later stabilized.
Benchmark 10-year notes last rose 1/32 in price
to yield 2.3523 percent, from 2.356 percent late on Thursday.
(Reporting by Rodrigo Campos, additional reporting by Sam
Forgione and Lewis Krauskopf; Editing by Nick Zieminski)