LONDON: Oil prices fell Friday, as many traders cashed in some of their bumper gains from the previous day, and eagerly awaited crucial non-farm payrolls numbers in the United States.
Brent North Sea crude for delivery in November retreated 72 cents to $111.86 a barrel in midday trade in London.
New York's main contract, West Texas Intermediate (WTI) or light sweet crude for November, dipped 79 cents to $90.92 a barrel.
"The main focus for today will remain on the release of the crucial US employment data that could set the tone for the trading session," said Sucden Financial Research analyst Myrto Sokou.
The US Labor Department will release figures for September job creation and unemployment at 1230 GMT, with analysts expecting little change from August's unimpressive numbers.
The United States is the world's largest oil consumer, and any downside to its economy is likely to weigh on crude prices.
Crude futures spiked on Thursday, with WTI soaring more than $4, as the market rebounded on mounting worries over clashes on the Syria-Turkey border, the weaker dollar and a fire at a US refinery, analysts said.
"The WTI crude prices rallied sharply yesterday, effectively recouping the losses posted the day before, largely on the back of a border conflict between Turkey and Syria," said Capital Spreads analyst Simon Denham.
"Furthermore, a fire reported at one of Exxon Mobile's refinery exacerbated the rise."
He added: "Today, all eyes will be on the US employment report which could offer a few extra clues on motorists' spare income and thus future oil demand."
The oil market also rose on Thursday as traders cheered US data showing better-than-expected private sector hiring and a pick up in the service industry, analysts said.
Crude oil has experienced choppy trade over the past week, according to analyst Gary Hornby at British-based consultancy Inenco.
"Oil prices (in London) have been trading within a tight band over the past five days, bouncing between $108 and $113," Hornby said.
"Ongoing Middle Eastern tensions and the bearish economic outlook have been the two main drivers, however prices jumped $4 higher ... as a fire at one of the largest oil refineries in the US saw US gasoline prices rise.
"Furthermore, oil supply remains tight with the continuing loss of oil from Iran, where the US sanctions have caused the Iranian currency to lose 17 percent of its value in one day, and could be the first sign that the financial sanctions against the country could be working."
Over the past week, Iran's rial currency has shed around 40 percent of its value against the dollar, sharply accelerating this year's slide as Western sanctions worsen underlying economic problems in the key oil-producing nation.
The US and the European Union have ratcheted up their sanctions on Iran this year to force it to curb its nuclear programme, which they suspect includes a drive to develop atomic weapons capability.
Iran, which says its nuclear activities are purely peaceful, has had its vital oil exports severely cut as a result, and is struggling to repatriate the billions of dollars its crude sales generate.
Comments
Comments are closed for this article.