World oil turned lower on Friday after rebounding above 90 dollars the previous day on easing concerns that slower US economic growth would dampen crude demand, traders said.
In London, Brent North Sea crude for January delivery lost 31 cents to 89.87 dollars per barrel. New York's main contract, light sweet crude for January delivery, shed 30 cents to 89.93 dollars per barrel.
"Oil futures were a touch weaker (on Friday), with New York crude holding around 90 dollars a barrel ahead of key jobs data in the US later today," said Sucden analyst Michael Davies.
"The non-farm payrolls could help to provide a clearer indicator of the economic situation in the US."
Traders remain concerned about a possible US slowdown because the country is the world's biggest energy consumer.
On Thursday, however, prices rallied as US President George W. Bush unveiled a wide-ranging mortgage relief package, saying it could help up to 1.2 million distressed homeowners in the country's troubled housing sector.
Davies added Friday: "The dollar was also firmer this morning ahead of these numbers, which may have put some downward pressure on oil prices as well."
A stronger dollar discourages demand for dollar-priced goods, such as crude oil, for buyers using weaker currencies.
The crude market witnessed more choppy trading this week amid a decision by the OPEC crude cartel to freeze output at current levels.
Prices spiked Wednesday by as much as two dollars but fell into negative territory after OPEC left its daily crude output quota unchanged at 27.25 million barrels after a meeting in Abu Dhabi.
The Organization of Petroleum Exporting Countries is regarded as a key player in the global energy market because it pumps about 40 percent of the world's crude supplies.
There was also muted reaction to a bigger-than-expected drop in US crude reserves, but traders have now begun to focus on the two issues, dealers said.
Latest figures from the US Department of Energy on Wednesday showed inventories of crude had plunged by 8.0 million barrels in the week ending November 30, sharply more than forecasts for a drop of 1.25 million barrels.
The United States has called on OPEC to pump more crude to cool oil prices that surged to record high levels near 100 dollars a barrel last month.
Prices will likely hold above 90 dollars since winter peak demand for heating fuel in the United States was about to kick in, said Katie Dean, a Melbourne-based economist with Australia's ANZ Bank.
"There is not a lot of supply coming so that will continue to hold the market relatively firmly," said Dean.
"We think that 90 dollars is about right for how the market is placed at the moment," she added.
In London, Brent North Sea crude for January delivery lost 31 cents to 89.87 dollars per barrel. New York's main contract, light sweet crude for January delivery, shed 30 cents to 89.93 dollars per barrel.
"Oil futures were a touch weaker (on Friday), with New York crude holding around 90 dollars a barrel ahead of key jobs data in the US later today," said Sucden analyst Michael Davies.
"The non-farm payrolls could help to provide a clearer indicator of the economic situation in the US."
Traders remain concerned about a possible US slowdown because the country is the world's biggest energy consumer.
On Thursday, however, prices rallied as US President George W. Bush unveiled a wide-ranging mortgage relief package, saying it could help up to 1.2 million distressed homeowners in the country's troubled housing sector.
Davies added Friday: "The dollar was also firmer this morning ahead of these numbers, which may have put some downward pressure on oil prices as well."
A stronger dollar discourages demand for dollar-priced goods, such as crude oil, for buyers using weaker currencies.
The crude market witnessed more choppy trading this week amid a decision by the OPEC crude cartel to freeze output at current levels.
Prices spiked Wednesday by as much as two dollars but fell into negative territory after OPEC left its daily crude output quota unchanged at 27.25 million barrels after a meeting in Abu Dhabi.
The Organization of Petroleum Exporting Countries is regarded as a key player in the global energy market because it pumps about 40 percent of the world's crude supplies.
There was also muted reaction to a bigger-than-expected drop in US crude reserves, but traders have now begun to focus on the two issues, dealers said.
Latest figures from the US Department of Energy on Wednesday showed inventories of crude had plunged by 8.0 million barrels in the week ending November 30, sharply more than forecasts for a drop of 1.25 million barrels.
The United States has called on OPEC to pump more crude to cool oil prices that surged to record high levels near 100 dollars a barrel last month.
Prices will likely hold above 90 dollars since winter peak demand for heating fuel in the United States was about to kick in, said Katie Dean, a Melbourne-based economist with Australia's ANZ Bank.
"There is not a lot of supply coming so that will continue to hold the market relatively firmly," said Dean.
"We think that 90 dollars is about right for how the market is placed at the moment," she added.
Via: AFP
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