RTRS: Oil falls from 6-month peak as jobs, Fed data weigh
Oil fell more than 2 percent on Thursday, dragged down off six-month highs as signs of job market weakness stoked concerns about the economy.
U.S. crude traded down $1.55 to $60.49 a barrel at 12:14 p.m. EDT, after hitting a six-month high over $62 on Wednesday. London Brent fell $1.19 at $59.40.
"The petroleum markets are lower on profit-taking this morning as traders take note of a downturn in the equity markets that erodes faith in the hopes of a V-shaped economic recovery," said Tim Evans, analyst, Citi Futures Perspective, in New York City.
U.S. stocks slid after a disappointing Fed regional survey and government unemployment data showed so-called continued claims rose to a fresh record while new jobless claims fell. .N
Manufacturing in the U.S. Mid-Atlantic region contracted for the eighth consecutive month, according to a Federal Reserve survey.
Additional pressure came from gains in the dollar, weighing on commodities denominated in the greenback.
Oil prices have jumped by about a third over the past four weeks, as signs of a potential economic rebound outweighed weak demand and high inventories.
A JP Morgan research note forecast the economy would begin to turn around in the second half, hiking its price forecasts in 2009 and 2010.
"While it may seem at odds with recent demand data and high levels of global inventories, we believe the economic outlook is improving and a second-half recovery, perhaps more vigorous than even we foresee, is on the cards," the bank said.
Oil got a lift on Wednesday after weekly U.S. government inventory data showed a steep drop in crude and gasoline stockpiles ahead of the Memorial Day weekend, traditionally the start of the summer driving season.
Slumping demand has sent crude tumbling from record highs near $150 a barrel last July, prompting the Organization of Petroleum Exporting Countries to agree a series of output cuts since September.
A senior Gulf OPEC delegate told Reuters the cartel was likely to keep output targets steady at its next meeting on May 28.
Eleven out of 12 oil analysts and economists surveyed by Reuters also predicted OPEC would maintain output.
