MSN: UPDATE 5-Oil falls towards $73 on economic unease
* Oil pares losses after mildly positive U.S. jobs data
* Premium of 2nd month U.S. crude vs front stays wide
* Coming Up: Pending U.S. homes sales data 1400 GMT
(Updates after U.S. jobs data)
By Alex Lawler and Joe Brock
LONDON, Sept 2 (Reuters) - Oil eased below $74 a barrel on Thursday after a slightly stronger-than-expected U.S. unemployment report failed to sooth concerns over the labor market in the world's largest energy consumer.
New claims for unemployment benefits in the United States fell last week, government data showed on Thursday, but markets remained cautious ahead of the key monthly U.S. nonfarm payrolls on Friday. [ID:nN02229178] [ID:nN01160047]
Pending home sales for August due at 1400 GMT on Thursday will also be carefully watched.
U.S. crude for October delivery fell 59 cents to $73.32 a barrel by 1302 GMT. Before the release of the U.S. jobs data, prices were down around 70 cents.
ICE Brent dipped 88 cents to $75.47, but remained at an atypical premium to U.S. crude because of high U.S. inventories.
U.S. crude stockpiles rose three times as much as expected in the week to Aug. 27, the Energy Information Administration said on Wednesday, helping to keep a lid on oil prices.
Total U.S. petroleum stockpiles rose last week to a high of 1.143 billion barrels, up from 1.139 billion the previous week, the highest inventory levels since at least 1990, when the EIA began tallying weekly stocks data.
"When you look at the statistics that were reported yesterday, they were frankly not supportive," Christophe Barret, analyst at Credit Agricole-CIB said.
Oil had gained almost 3 percent on Wednesday as reports showed manufacturing in the United States and China accelerated in August, raising hopes petroleum stocks would fall and reviving confidence across markets.
"It may have been a little bit overdone, so we may have a slight correction today," said Barret, referring to Wednesday's rally. "The big thing everyone is waiting for is the job numbers on Friday."
European equities turned lower on Thursday with the European Central Bank expected to extend its liquidity safety-net, delaying its exit from crisis support as policymakers confront a lopsided euro zone recovery. [ID:nLDE6810DM]
On the weather front, Tropical Depression Nine in the eastern Atlantic Ocean strengthened into Tropical Storm Gaston late on Wednesday as it continued on a westerly path that could head for the Caribbean.
Some early computer models showed Gaston tracking into the Caribbean, but it was too early to say if it would threaten the Gulf of Mexico and its extensive oil installations. [ID:nN01132042] (Additional reporting by Alejandro Barbajosa; editing by James Jukwey)
