Oil drops as looming jobs report sparks trader concerns

Oil posted its lowest close in more than a week as investors sought to avoid being caught on the wrong side of the jobless claims number scheduled for release tomorrow.

Crude markets reversed an early rally that was driven by an initial sense higher-than-expected unemployment figures could open a path for the Federal Reserve to take a less forceful approach to interest rate hikes. Sentiment turned sour as traders shifted to capture gains amid an uncertain macro environment. 

Investors are now waiting to see what Friday’s payroll report will bring.