* Oil falls for the third straight session, heads towards
$66
* Rising US, euro zone job losses hit recovery hope
(Releads, updates prices)
By Fayen Wong
PERTH, July 3 (Reuters) - Oil steadied below $67 a barrel
on Friday, after a nearly 4 percent fall overnight as high
jobless numbers across the U.S. and Europe revived concerns
about the global economic outlook and its impact on energy
demand.
In the latest signal the economy of the world's biggest
energy consumer was still struggling with a deep recession,
U.S. employers cut a more-than-expected 467,000 jobs in June
and the jobless rate rose to a 26-year high of 9.5 percent.
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Euro zone unemployment also rose to 9.5 percent, a 10-year
high. []
U.S. crude for August delivery <CLc1> edged up 1 cent to
$66.74 a barrel by 0607 GMT.
London Brent crude <LCOc1> fell 7 cents to $66.58.
"Data from last night were pretty traumatic. We now see the
official U.S. unemployment rate at 9.5 percent, which means the
real jobless rate could be much higher at 15-16 percent," 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."
Analysts said Friday's euro zone service sector surveys for
June and retails sales for May are unlikely to cheer investors
either, with both sets of data expected to show a deterioration
from the previous month.
The dollar held onto gains made in the wake of the U.S.
jobs numbers, hovering near its highest in a week against the
euro, while Asian stocks retreated on Friday as the bleak jobs
data prompted investors to pull back from commodities,
resource-linked shares and higher yielding currencies.
[]
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 -- amid a weak
dollar and optimism that the global economy would rebound by as
early as later this year.
But latest economic data worldwide are 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.
"An economic recovery will still be the primary factor in
determining oil demand growth. But we are also acutely aware
that prices have been rising to ration away the prospect of
supply tightness at the end of the year," JP Morgan oil analyst
Lawrence Eagles said in the research note.
NYMEX floor trading will be closed Friday for the U.S.
Independence Day holiday. Electronic trading will not be
affected.
(Reporting by Fayen Wong; Editing by Michael Urquhart)
