LONDON — Oil prices pulled back on Friday in-line with stock markets as traders awaited US jobs data that may provide clues for future crude demand.
In early trading here, Brent North Sea crude for delivery in September dropped 61 cents to 74.22 dollars a barrel, after touching 76.00 dollars on Thursday, its highest level for ten months.
New York's main contract, light sweet crude for September, slid 73 cents to 71.21 dollars a barrel, after reaching a five-week high of 72.42 dollars on Thursday.
"Oil is retreating a bit and that's not surprising considering" stock markets are down, said Victor Shum, senior principal at energy consultancy Purvin and Gertz.
"Oil has followed equities for quite a few months."
Despite crude prices staying above 70 dollars, Shum said caution remains in the oil market because of weak energy demand from major economies hit by the global economic downturn.
"The market fundamentals really do not provide support to the current price levels which look vulnerable," he said.
Oil prices rallied this week as a weakening dollar made crude futures an attractive investment option, traders said.
Crude futures are priced in the US currency and become cheaper when the dollar falls.
Investors were awaiting the release of the US jobs report for July.
Most economists expect the data will show the unemployment rate climbed to 9.6 percent, from a 26-year high of 9.5 percent in June, and the economy shed 328,000 non-farm jobs.
