New York. Oil fell for the fourth day in a row on Friday, dropping more than 2 percent, as Wall Street fell in volatile trade and the dollar rose on safe haven bets.
Worries about euro zone sovereign debt continued to roil the financial and commodities markets, overshadowing better-than-expected US jobs data for April.
US crude oil futures were down $1.96, or 2.54 percent, at $75.15 a barrel by 10:45 a.m. EDT (1445 GMT), having risen as high as $78.19 earlier.
The day’s low extended to $74.51, lowest since Feb. 16 and losses in four sessions have reached nearly $12, or 13.6 percent. London Brent crude fell 72 cents to $79.11 a barrel.
“After yesterday’s wild ride across markets, there isn’t a good feel on how to react today. But generally, oil prices have been backing away from the 19-month high above $87,” said Gene McGillian, analyst at Tradition Energy, in Stamford, Connecticut.
The euro gave up gains against the dollar as fears persisted that Greece’s debt crisis could spread to other euro zone countries.
Oil turned negative earlier after US April jobs data, showed that nonfarm payrolls grew at the fastest pace in four years, although the overall jobless rate remained at a high 9.9 percent, compared with 9.7 percent in March.
“The US nonfarms payroll were somewhat positive but the jobless rate up to 9.9 percent perhaps turned us back down,” said Tom Bentz, a broker with BNP Paribas Commodity Futures in New York. “The dollar strengthened and we came off.”
Oil prices have lost further ground from a 19-month high hit on Monday, following a plunge in global markets due mainly to concern over the Greek debt crisis.
“All markets are down this week on concerns over Greece and Europe. If the whole of the euro zone goes into trouble, it may somehow offset potential growth in the United States and Asia, which will be negative input to oil prices,” Oliver Jakob with Petromatrix said.
Global equity markets have also fallen this week, while market volatility index and gold have risen.
Analysts say actual oil demand so far has not recovered from last year’s fall strongly enough to drive prices higher.
At the same time, midweek US government data showed crude and gasoline stocks in the world’s largest energy consumer rose more than expected last week.
