Oil hits five-month low

Saturday, 6 April 2013 00:00 - - {{hitsCtrl.values.hits}}

LONDON (Reuters) - Brent crude oil fell to a five-month low near $105 per barrel on Friday as bleak U.S. jobs data and bulging inventories dimmed the outlook for economic growth and fuel demand.

U.S. employers hired at the slowest pace in nine months in March, jobs data showed, a sign that Washington’s austerity drive could be stealing momentum from the economy.

The U.S. economy added just 88,000 jobs last month and the jobless rate ticked a 10th of a point lower to 7.6%, largely due to people dropping out of the workforce, Labor Department figures showed.

A Reuters poll had predicted a 200,000 increase in U.S. jobs last month, down from 236,000 in February.

Oil was set for its worst week for more than six months with Brent down more than 4% and U.S. crude off almost 5.0%.

Brent crude fell to a low of $104.92, down $1.42 and its lowest since Nov. 5, before recovering to trade around $105.20 by 1330 GMT. U.S. crude dropped $1.35 to a low of $91.91 but then rallied to around $92.40.