NEW YORK (Reuters) - Oil prices fell below $76 a barrel on Friday, pressured by a stronger dollar and weaker equities which outweighed reaction from better-than-expected U.S. jobs data.
U.S. crude futures fell 52 cents to $75.94 at 12:10 EDT. Brent crude fell 26 cents to $78.10.
The dollar rose above 90 yen for the first time in three weeks, making dollar-denominated commodities like crude more expensive for holders of other currencies.
Investors have been looking to economic data for signs of global economic recovery and a potential rebound in energy demand.
U.S. stocks sharply pared gains on Friday as the rising U.S. dollar weighed on commodities and risk appetite ebbed. .N
In earlier trading, crude rose to near $78 a barrel after the U.S. Labor Department reported that employers cut only 11,000 jobs last month, the fewest in nearly two years. The jobless rate edged down to 10 percent.
But U.S. unemployment remains high and energy fundamentals in the world's largest energy consumer are weak, keeping analysts skeptical about crude's upside potential.
"Unemployment at 10 percent isn't an improvement, no matter how many times you slice it. The early rally here is being tempered by considerations of the overhang in petroleum supplies," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.
"In any case, the oil market is looking at the dollar and its movement at this point could likely lead to a test of crude support at $75," McGillian added.
OPEC
Olivier Jakob with Petromatrix said high oil inventory levels in the United States, especially at the delivery point of U.S. crude at Cushing, Oklahoma, have been putting more pressure on U.S. oil prices than on North Sea benchmark Brent crude.
