* U.S. April nonfarm jobs gain, largest since March '06
* G7, European leaders meet to try to end Greek crisis
* Oil's losses reach more than 13 pct in four days
* Coming up: Arab oil ministers meet in Doha May 9-12
(Updates with market activity, prices, analyst's comment,
technical outlook)
By Gene Ramos
NEW YORK, May 7 (Reuters) - Oil fell for the fourth day in
a row on Friday and was on course to post its biggest weekly
loss in almost a year and a half, tracking a steep fall on Wall
Street on euro zone debt worries.
Better-than-expected U.S. jobs data for April failed to
calm fears in oil markets that if Greek's debt crisis spread to
other euro-zone economies, the budding economic recovery could
slow and still dampen currently lackluster oil demand.
U.S. crude oil futures <CLc1> were down $1.83, or 2.4
percent, at $75.28 a barrel by 1:30 p.m. EDT (1730 GMT), after
falling further to $74.51, its lowest since Feb. 16.
Losses on the week already topped 12 percent, and would be
the worst since prices fell almost 27 percent in the week to
Dec. 19, 2008.
"The energy markets are hanging out with equities, rolling
with the Greek contagion issue," said Richard Ilczyszyn, senior
market strategist at Lind-Waldock in Chicago.
"Today, it looks like we've hit a double bottom on June
crude, having hit a $74.58 low yesterday and $74.51 today. June
crude has gotten ahead of itself on the downside and looks
oversold," he added.
But chartists noted that Friday's further move to the
downside came after breaching support at the 200-day moving
average, a key long-term trend signal watched by traders.
Now, those chartists say the break could herald a move
below $70. []
WALL STREET BLUES
U.S. equities fell again on Friday, a day after the Dow
suffered its biggest intraday point drop loss, as fears of a
financial meltdown stemming from the debt crisis in Greece
persisted. []
The euro, meanwhile, rebounded from a 14-month low against
the dollar as German lawmakers approved a rescue plan for
Greece, while the dollar gained against the yen after the U.S.
employment data. []
Euro zone leaders will meet later in the day in a special
summit, while Germany's parliament is to vote on the 110
billion euro ($140 billion) bailout later in the day.
[]
Oil turned negative earlier after U.S. 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 U.S. 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."
Analysts say actual oil demand so far has not recovered
from last year's fall strongly enough to drive prices higher.
Fundamentals remain bearish as midweek U.S. government data
showed crude and gasoline stocks in the world's largest energy
consumer rose more than expected last week.
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For the correlation between crude futures and equities, click
on:
http://graphics.thomsonreuters.com/gfx/JLeff_20100705123106.jpg
For a chart of oil's correlation with risk aversion, see:
http://graphics.thomsonreuters.com/gfx/NT_20100705110504.jpg
For a technical chart, see:
http://graphics.thomsonreuters.com/gfx/WT_20100705085001.jpg
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Additional reporting by Robert Gibbons in New York; Ikuko
Kurahone in London; Florence Tan in Singapore and Janet McGurty
in Toronto; editing by Marguerita Choy)
