UPDATE 8-Oil falls nearly 3 pct on U.S. unemployment data

Fri Nov 6, 2009 8:34pm GMT
 

* U.S. unemployment rate climbs to 26-1/2 year high

* US Gulf energy companies say weather has not hit output (Updates prices)

By Matthew Robinson

NEW YORK, Nov 6 (Reuters) - Oil prices fell nearly 3 percent to $77 a barrel on Friday after data showed the U.S. jobless rate jumped to a 26-1/2-year high in October, raising concerns about a potential rebound in fuel demand.

The Labor Department said employers cut 190,000 jobs in October, more than the 175,000 that markets had expected, bringing unemployment to 10.2 percent. [ID:nN06178752]

Energy markets have been watching economic data for signs of recovery from the recession that slammed fuel consumption, helping to lift crude prices from below $33 a barrel in December 2008.

U.S. crude CLc1 settled down $2.19 at $77.43 a barrel. London Brent crude LCOc1 fell $2.12 to $75.87 a barrel.

"Crude and products futures pulled back sharply after the release of the October U.S. unemployment report," Addison Armstrong, analyst at Tradition Energy in Stamford, Connecticut, said in a research note.

On Wednesday, the U.S. Federal Reserve said it had left official rates on hold, laying out conditions for any change based on improving employment, among other factors. [ID:nN04453484]  Continued...

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