* Surge in U.S. jobs fails to calm fears in oil market
* G7, European leaders meet to try to end Greek crisis
* Oil's weekly loss near 13 percent, fundamentals bleak
* Coming up: Arab oil ministers meet in Doha May 9-12
(Updates with settlement prices, details)
By Gene Ramos
NEW YORK, May 7 (Reuters) - Oil fell $2 a barrel on Friday
and posted its biggest weekly loss in almost a year and a half
following the sharp sell-off on Wall Street and on worries that
the euro zone's debt crisis will derail the global economic
recovery.
Better-than-expected U.S. jobs data for April failed to
calm fears in oil markets that the Greek's debt crisis could
spread to other euro-zone countries.
U.S. crude oil futures <CLc1> fell for a fourth day in a
row and settled down $2, or 2.6 percent, at $75.11 a barrel,
after falling further to $74.51, its lowest since Feb. 16.
Losses for the week totaled $11.04, or 12.8 percent, 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.
Friday's extended move to the downside came after breaching
support at the 200-day moving average, a key long-term trend
signal watched by traders.
Now, chartists say the break could herald a move below $70.
[]
London Brent crude <LCOc1> ended down $1.56, or 2 percent,
at $78.27 a barrel.
WALL STREET BLUES
U.S. equities fell again on Friday, a day after the Dow
suffered its biggest intraday point 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.
[]
Governments around the world sought to calm financial
markets hit by fears surrounding the Greek crisis and U.S.
President Barack Obama told German Chancellor Angela Merkel by
phone he backed efforts to rescue Greece.
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 and equities, click on:
http://link.reuters.com/vat23k
For a chart of oil's correlation with risk aversion, see:
http://link.reuters.com/xat23k
For a technical chart, see: http://link.reuters.com/but23k
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(Additional reporting by Robert Gibbons in New York; Ikuko
Kurahone in London; Florence Tan in Singapore and Janet McGurty
in Toronto; Editing by Lisa Shumaker)
