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Oil falls below $94 on US jobs data

LONDON: Oil fell below $94 a barrel on Friday after a report showed US employers slashed jobs in September, the latest indication of the weakening economy of the world’s largest oil consumer. Investors awaited a vote on the US financial bailout plan in the US House of Representatives but showed scepticism that the package would be enough to limit further oil demand falls. US crude was down 46 cents at $93.51 a barrel by 1344 GMT. On Thursday, it plunged $4.56 amid a broader sell-off in the commodities markets. London Brent crude was down 31 cents at $90.25. US employers cut payrolls at the steepest rate in 5-1/2 years in September, slashing an unexpectedly large 159,000 jobs as employment contracted for a ninth straight month. The unemployment rate was unchanged from August at 6.1 percent, the highest rate in five years, as 121,000 people left the workforce, the Labour Department reported on Friday. The US House of Representatives could vote as early as Friday on the revised $700 billion financial industry rescue bill, which was approved by the US Senate late on Wednesday. The worsening economic outlook has focused attention on the prospects for global oil demand. Some analysts say current mainstream forecasts for demand are too high. The International Energy Agency expects oil demand in 2009 to grow by 890,000 barrels per day. The Paris-based IEA is scheduled to update its forecasts on Oct 10. “The increasingly gloomy economic outlook leaves consensus views on oil demand growth for 2009 too high in our view,” said Morgan Stanley in a report. reuters

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