Oil declined, headed for a weekly drop, on forecasts that a U.S. government report will show the jobless rate rose in August for the first time in four months, threatening the recovery in fuel demand. Futures are down 0.4 percent this week while analysts estimate the August payrolls report from the Labor Department will show the U.S. economy lost 105,000 jobs, according to a Bloomberg survey. Crude gained yesterday after an fire on a Gulf of Mexico oil and natural-gas platform prompted speculation that tighter regulations will cut production. “Crude traders are pensive ahead of today’s non-farm payrolls, as this will affect financial markets generally and the dollar in particular,” said Tony Machacek, a broker at Bache Commodities Ltd. in London. “While oil prices are slightly lower, they’re still holding near the highs of the week.” The October contract fell as much as 48 cents, or 0.6 percent, to $74.54 a barrel in electronic trading on the New York Mercantile Exchange, and was at $74.80 at 8:32 a.m. London time. Brent crude for October settlement declined 41 cents, or 0.5 percent, to $76.52 on the London-based ICE Futures Europe exchange. Platform Fire A fire on a Mariner Energy Inc. platform about 90 miles off the Louisiana coast was put out at approximately 3:30 p.m. local time yesterday, and all 13 workers were rescued without injury, Coast Guard Captain Peter Troedsson said at a press conference in New Orleans. Hurricane Earl weakened to a Category 2 storm as it passed the eastern seaboard of the U.S., the National Hurricane Center said in an advisory at 8 p.m. Miami time. Earl’s winds decreased to 110 miles (165 kilometers) per hour from 115 mph earlier, the center said. U.S. crude oil stockpiles climbed 3.43 million barrels to 361.7 million last week, an Energy Department report showed Sept. 1. Supplies were projected to increase 1.2 million barrels, according to the median of 16 analyst estimates in a Bloomberg News survey. Refineries operated at 87 percent of capacity, down 0.7 percentage point from the prior week, the department said. It was the lowest level since April. Refiners often idle units for maintenance in September and October as gasoline demand falls and before heating-oil use increases. Focus on Payrolls Initial jobless claims fell by 6,000 to 472,000 last week, Labor Department figures yesterday showed, in line with the median forecast of economists in a Bloomberg News survey. Applications exceeded the 463,000 average so far this year. “The market will turn to payroll numbers tonight with expectations of a headline fall of 105,000 and a rise in the unemployment rate to 9.6 percent,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne, said in an e-mailed note today. Crude oil may fall next week as U.S. refineries perform seasonal maintenance, reducing demand, a Bloomberg News survey showed. Fourteen of 34 analysts, or 41 percent, forecast crude oil will decline through Sept. 10. Ten respondents, or 29 percent, predicted that futures will rise, and 10 projected prices will be little changed. Last week, 41 percent of analysts forecast an increase. To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net

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