(Updates with settlement prices, details, changes dateline
previously LONDON)
NEW YORK, April 3 (Reuters) - Oil slipped on Thursday after
weak U.S. jobs data intensified worries among investors that an
economic slowdown could cut deeply into energy demand in the
world's top consumer nation.
U.S. crude <CLc1> settled down $1.00 at $103.83 a barrel,
while London Brent crude <LCOc1> dropped $1.23 to $102.52.
The losses came after U.S. data showed jobless claims were
the highest since 2005, stoking fears of a significant economic
slowdown that could further weaken consumption of fuels like
gasoline and diesel.
"With the U.S. apparently sliding into a recession, oil
market rallies will probably not derive as much strength from
gasoline this year," Jan Stuart, economist with UBS, said in a
research note.
Oil prices have quintupled since 2002 and remain within
range of the record $110.80 hit last month as generally tight
global inventories, strong demand from developing Asian
economies and a weak U.S. dollar spurred a rush of investment
in commodities markets.
But the market has pulled back since the peak on growing
uncertainty over future demand -- a factor that has led OPEC to
hold the line on its output cuts.
"We are obviously worried about North America's economy
slowdown, which could eventually have an effect on demand, but
there could be some compensation as countries like China and
India increase their demand for crude," said Ecuadorean Oil
Minister Galo Chiriboga.
Federal Reserve Chairman Ben Bernanke on Wednesday conceded
for the first time that the U.S. economy may fall into
recession in the first half of 2008.
Meanwhile, a report from the U.S. Energy Information
Administration released Wednesday showed oil demand in the
United States over the first 13 weeks of the year down more
than 479,000 barrels per day (bpd) compared to a year ago.
"This remains a nervous and volatile market," said Peter
Beutel, president of Cameron Hanover.
Tempering the losses, dealers continued to watch supply
problems in the Middle East and Africa.
In Nigeria, a fire at the country's major oil export
pipeline kept burning for a fifth day. The operator, a Royal
Dutch Shell venture, said output and exports were unaffected.
Similar pipeline fires at Shell's pipeline last year led to
partial losses of supplies from Africa's largest oil exporter.
In Iraq, officials said they had partially restarted output
from southern oil fields that pump around 100,000 barrels per
day after they were shut by a bomb attack on a pipeline last
week. []
(Reporting by Richard Valdmanis; additional reporting by Ikuko
Kao in London, Chua Baizhen in Singapore, and Alonso Soto in
Quito; editing by Jim Marshall)
