LONDON: Oil fell on Friday, reversing earlier gains after non-farm payrolls data came in weaker than expected which clouded the demand outlook from the world's largest oil consumer.
US employers slowed hiring over the last two months and wages fell in September, raising new doubts the economy is strong enough for the Federal Reserve to raise interest rates by the end of this year.
"The jobs data was lower than expected so it softens the picture for the US a bit," said Olivier Jakob, analyst at Petromatrix in Zug, Switzerland. Global benchmark Brent fell 20 cents to $47.49 a barrel by 1308 GMT. The contract had closed the previous session down 68 cents. US crude was 8 cents at $44.82 a barrel.
The downward move was much more muted than for other assets such as stocks due to weakness in the dollar.
"The weaker dollar is acting as an anchor for crude prices, to stop it participating in a risk-off rout," said Matt Smith, director of commodity research at ClipperData, an energy database and consultancy in New York.
A weaker dollar supports oil demand by making it more affordable to holders of other currencies.
The oil market was factoring in a risk premium over Syria, where Russia and the United States are conducting bombing campaigns.
The situation was complicated by the arrival of hundreds of Iranian troops in Syria to join a ground offensive in support of government forces.
Fears eased over the possibility of disruption to US East Coast oil facilities by Hurricane Joaquin, also pressuring oil.
Oil is down more than 2 percent this week, after it fell 24 percent last quarter, with few analysts expecting a significant recovery.
"Fundamentals remain weak," analysts at ANZ said in a note to clients.
"We continue to see weaker fundamentals drive crude oil prices lower in the short term."
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