LONDON (SHARECAST) - US oil crude settled below $41 a barrel Friday, a four year low, after a report showed a sharp decline in US job losses last month.
Employers slashed a bigger-than-expected 533,000 staff in November while the unemployment rate rose to 6.7%, a 15-year high. The grim data underlined concern that demand for oil will remain low as the economy slows.
Sentiment was hit further after an analyst from Merrill Lynch said crude may drop to $25 a barrel in 2009 if the global recession hits China. There were also jitters following a report showing China's car sales declined in November.
Crude for January deliver fell $2.86 to settle at $40.81 a barrel, its lowest close since 10 December 2004.
Oil prices have plummeted since its record high of $147.27 a barrel in mid-July as fears increase about demand deterioration.
Oil cartel OPEC is expected to cut production again at its next meeting later this month.
Among precious metals gold for February delivery settled $13.30 lower at $752.20 an ounce on the COMEX division of the New York Mercantile Exchange.
The US jobs report pushed the dollar higher and sparked a wide scale commodities sell-off. Gold also weakened as concern about inflation eases. The yellow metal is often sought as a hedge against inflation.
March silver futures fell 9 cents to $9.43 an ounce while January platinum fell $11.60 to $787.20 an ounce.
