Oil prices slid Friday as grim US jobless data stoked concerns about demand in the United States amid a recession hammering the world's largest energy consumer.
New York's main futures contract, light sweet crude for delivery in March, fell 1.00 dollar to close at 40.17 dollars a barrel.
In London, Brent North Sea crude for March slipped 25 cents to settle at 46.21 dollars a barrel.
The US Labor Department reported Friday that the country's unemployment rate surged in January to 7.6 percent, the highest since 1992, as the economy shed 598,000 nonfarm jobs.
The number of job losses as the economy entered a second year of recession was the worst since 1974, according to the monthly Labor Department report on nonfarm payrolls.
The poor report reinforced market concerns about falling energy demand in the world's biggest energy consumer and worldwide, analysts said.
"Market weakness over the last six months has been attributed to shrinking demand and the expectation of further contractions. The evidence of this is everywhere -- not the least of which is today's nonfarm payrolls report," said John Kilduff at MF Global.
In a breathtaking reversal, oil prices have fallen more than 70 percent since July, when they had hit all-time highs above 147 dollars a barrel.
"The dramatic slowdown in US and global economic growth has lead to the world going away from worrying about peak oil (prices) to the more imminent and perhaps more painful reality of peak demand," said Alaron Trading's Phil Flynn.
"The signs that demand has peaked are everywhere and are especially clear when we see all of unused capacity around the global marketplace," Flynn said.
Kilduff said the poor jobs report would spur US lawmakers "to emphasize the increasing urgency of stimulus."
US President Barack Obama is pushing Congress to approve a huge stimulus plan, estimated at 900 billion dollars, to prevent an economic meltdown and create jobs.
The market was also dragged lower this week by news of the fifth consecutive week of rising US crude inventories.
US government data showed Wednesday that crude stockpiles had soared by 7.2 million barrels last week, more than double the 2.9 million barrels forecast by analysts.
The Organization of the Petroleum Exporting Countries, which pumps about 40 percent of the world's oil, last week signaled it would consider more output reductions in a bid to bolster prices.
OPEC announced production cuts totaling 4.2 million barrels per day late last year. The cartel is to meet again next month.
New York's main futures contract, light sweet crude for delivery in March, fell 1.00 dollar to close at 40.17 dollars a barrel.
In London, Brent North Sea crude for March slipped 25 cents to settle at 46.21 dollars a barrel.
The US Labor Department reported Friday that the country's unemployment rate surged in January to 7.6 percent, the highest since 1992, as the economy shed 598,000 nonfarm jobs.
The number of job losses as the economy entered a second year of recession was the worst since 1974, according to the monthly Labor Department report on nonfarm payrolls.
The poor report reinforced market concerns about falling energy demand in the world's biggest energy consumer and worldwide, analysts said.
"Market weakness over the last six months has been attributed to shrinking demand and the expectation of further contractions. The evidence of this is everywhere -- not the least of which is today's nonfarm payrolls report," said John Kilduff at MF Global.
In a breathtaking reversal, oil prices have fallen more than 70 percent since July, when they had hit all-time highs above 147 dollars a barrel.
"The dramatic slowdown in US and global economic growth has lead to the world going away from worrying about peak oil (prices) to the more imminent and perhaps more painful reality of peak demand," said Alaron Trading's Phil Flynn.
"The signs that demand has peaked are everywhere and are especially clear when we see all of unused capacity around the global marketplace," Flynn said.
Kilduff said the poor jobs report would spur US lawmakers "to emphasize the increasing urgency of stimulus."
US President Barack Obama is pushing Congress to approve a huge stimulus plan, estimated at 900 billion dollars, to prevent an economic meltdown and create jobs.
The market was also dragged lower this week by news of the fifth consecutive week of rising US crude inventories.
US government data showed Wednesday that crude stockpiles had soared by 7.2 million barrels last week, more than double the 2.9 million barrels forecast by analysts.
The Organization of the Petroleum Exporting Countries, which pumps about 40 percent of the world's oil, last week signaled it would consider more output reductions in a bid to bolster prices.
OPEC announced production cuts totaling 4.2 million barrels per day late last year. The cartel is to meet again next month.
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