NEW YORK: Oil prices slipped Friday as a dip in the US unemployment rate failed to allay skepticism about economic recovery in the United States and Europe and the strength of crude demand.
New York's main contract, West Texas Intermediate for delivery in January, finished at $85.93 a barrel, down 33 cents from Thursday's closing level.
In London trade, Brent North Sea crude for January fell one cent to $107.02
Oil prices were up initially following the release of US government data showing a surprise fall in the nation's unemployment rate to 7.7 per cent in November, its lowest level since December 2008.
"Of course the job report this morning was better than expected," said independent analyst Andy Lipow.
However, he added, there was some amount of skepticism about the impact of Superstorm Sandy, which hit the East Coast in late October and early November. In releasing its statistics, the Labour Department said the hurricane "did not substantively impact" the data.
"Other than that, there (is) still concern with some of the economic news that came out of Europe, notably regarding growth in Germany," he added.
"Those type of headlines continue to weigh on market sentiment."
Also dulling the economic outlook was the release of the University of Michigan consumer sentiment index, which declined to 74.5 from November's 82.7 -- the best level in five years.
The data is crucial for the oil market because the United States is the world's largest consumer of crude.
Market sentiment was also dampened somewhat after Germany's Bundesbank warned that the eurozone powerhouse could sink into recession early next year, but was well placed to rebound strongly.
The German central bank, in its latest updated twice-yearly forecasts, said there were "indications that economic activity may actually fall in the final quarter of 2012 and the first quarter of 2013."
- AFP/fa
Oil slips amid concerns about demand for crude
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Oil slips amid concerns about demand for crude
