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Oil slips below $67 after bleak U.S. jobs data
Friday July 3, 08:23 PM
* Oil eases after near 4 pct fall
* Rising US, euro zone job losses hit recovery hopes
* JP Morgan sees risk of price fall to $60
(Previous PERTH, updates prices)
LONDON, July 3 (Reuters) - Oil eased below $67 a barrel on Friday, after a nearly 4 percent fall in the previous session, pressured by a stronger dollar and investor concern about the economic outlook and energy demand.
In the latest sign the economy of the world's top consumer was still struggling, data on Thursday showed U.S. employers cut 467,000 jobs in June and the jobless rate rose to a 26-year high. Euro zone unemployment rose to a 10-year high.
"Data from last night were pretty traumatic," said Stefano Vincelli, an equities and derivatives broker at Halifax Investment Services in Sydney.
"Also, now that sentiments are getting more bearish, we're again seeing a negative correlation between the U.S dollar and commodities prices."
U.S. crude for August delivery CLc1 slipped 9 cents to $66.64 a barrel by 0808 GMT. London Brent crude LCOc1 fell 14 cents to $66.51.
NYMEX floor trading will be closed on Friday for the U.S. Independence Day holiday. Electronic trading will be open. Volume may be lighter than normal, leading to volatile trading, analysts said.
The dollar edged higher against a basket of other major currencies, limiting the appeal of oil and commodities as an inflation hedge. European stocks pared early gains.
Oil prices have doubled from a low of $32.40 a barrel in December last year and surged over 42 percent in the last quarter -- the largest quarterly gain since 1990 -- partly on hopes of economic recovery.
But the latest economic data is suggesting that a global recovery will be choppy this year, if it occurs at all. Economists have warned that surging unemployment would be one of the key threats to a sustainable recovery.
JP Morgan said in a report on Friday that it expects oil prices to correct from the recent rally to about $60 a barrel or lower, amid ongoing demand weakness.
Analysts who use past price moves to predict price direction see a similar prospect.
"Risks are shifting for a downside correction toward $60 in the weeks ahead before the larger bull trend resumes," Barclays Capital technical analysts said. (Additional reporting by Fayen Wong in Perth) (Reporting by Alex Lawler, Editing by Peter Blackburn)
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