Oil block to $68 a butt advanced of US jobs report

Oil prices slipped to about $68 a butt Thursday as ascent unemployment in Europe helped strengthen the U.S. dollar and draw investors out of commodities.

Investors were additionally apprehension the absolution of a key U.S. application address for hints on the angle for the world's better economy.

By midday in Europe, criterion awkward for August commitment was bottomward $1.35 to $67.96 a butt in cyberbanking trading on the New York Mercantile Exchange. On Tuesday, it fell 58 cents to achieve at $69.31.

A assemblage from beneath $35 a butt in March adjourned aftermost ages on broker affair that a apathetic all-around abridgement may not balance fast abundant to absolve surging oil prices.

Unemployment in the 16 countries that use the euro acicular to a ten-year aerial in May, reinforcing apropos about the breadth of the bread-and-butter recovery. The seasonally-adjusted unemployment amount for the euro area in May stood at 9.5 percent, up from April's 9.3 percent and hitting its accomplished akin aback May 1999.

The euro slipped to $1.4079 on Thursday from $1.4148 backward Wednesday in New York, while the British batter was bottomward to $1.6363 from $1.6474.

Investors about-face to bolt like oil to barrier adjoin aggrandizement and dollar weakness, but tend to alluvion aback to the U.S. bill back it strengthens.

Traders will be eyeing the Labor Department's June unemployment report, due to be appear after Thursday, for signs of advance in the abridgement and customer demand.

The abandoned amount hit a 25-year aerial of 9.4 percent in May, jumping from 8.9 percent the antecedent month.

Oil will acceptable barter amid $65 a butt and $75 in the July-September period, averaging $71 in the third division and $76 in the fourth quarter, Barclays Capital said in a report.

"We apprehend the advancement drive in abounding bolt to apathetic over the abutting few quarters, afore beginning highs are accomplished back the aeon becomes expansive," Barclays said.

Prices were bolstered Wednesday by a account address from the Energy Department's Energy Information Administration which showed awkward inventories fell added than some expected, accident 3.7 actor barrels for the anniversary concluded June 26.

Supplies accept alone 15.8 actor barrels during the aftermost four weeks, a assurance awkward appeal may be acrimonious up.

In added Nymex trading, gasoline for August commitment fell 3.4 cents to $1.825 a gallon and heating oil slid 3.08 cents to $1.7349. Natural gas for August commitment alone 4.2 cents to $3.753 per 1,000 cubic feet.

In London, Brent prices fell $1.15 to $67.64 a butt on the ICE Futures exchange.

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Associated Press biographer Alex Kennedy in Singapore.