Oil prices fell below $75 a barrel Friday ahead of closely watched U.S. employment report that will inform traders about the strength of future energy demand from the No. 1 economy.
By early afternoon in Europe, benchmark oil for October delivery was down 35 cents at $74.67 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.11 to settle at $75.02 on Thursday.
Stock markets in Asia an Europe were mostly higher after U.S. indicators showed slight improvement in economic activity but oil, which often follow stock markets, ignored this cue ahead of the employment figures due later Friday.
The employment report for August is expected to show the unemployment rate rising to 9.6 percent from 9.5 percent in July, according to a survey of analysts by Thomson Reuters.
Oil prices have traded between $70 and $80 for most of the past year as the global economy recovered from last year's recession, but developed countries struggled to regain strong growth. U.S. crude and fuel inventories have remained high, suggesting the demand for fuel remains sluggish.
Analysts said the effects of Hurricane Earl on oil industry facilities on the eastern U.S. coast were also influencing prices.
"Although some northeastern refineries and facilities could shut down or get damaged as a result, potentially crimping supply, the opposite situation could just as easily occur," said Edward Meir of MF Global in New York. "Gasoline demand may suffer if people decide to scuttle weekend trips on account of coastal flooding or other logistical issues."
In other Nymex trading in October contracts, heating oil fell 0.86 cent to $2.0537 a gallon and gasoline dropped 1.22 cent to $1.9094 a gallon. Natural gas for October delivery rose 2.8 cents to $3.779 per 1,000 cubic feet.
In London, Brent crude was down 38 cents at $76.55 on the ICE Futures exchange.
Oil prices fell below $75 a barrel Friday ahead of closely watched U.S. employment report that will inform traders about the strength of future energy demand from the No. 1 economy.
