Oil fell more than 2% to $69 a barrel today after US employment figures raised doubts about the strength of the economic recovery.
US unemployment in September rose to its highest rate since June 1983, with payrolls dropping 263,000 against market expectations of an 180,000 fall, the US Labor Department said, bringing unemployment to 9.8%.
US crude futures traded down $1.63 to $69.19 a barrel by 5.06pm. London Brent crude lost $1.82 to $67.37 a barrel.
Oil inventories have swelled as the recession hits global fuel demand, sending crude prices from record highs close to $150 a barrel in July 2008 to below $33 a barrel in December.
Traders have looked toward wider economic data for signs of a turnaround that would send fuel consumption higher.
Crude found some support as the jobs data pushed down the dollar against major currencies. A weaker greenback tends to boost dollar-priced commodities, as they become cheaper in other currencies.
Oil markets were also watching talks between six major powers and Iran - the second largest oil exporter in OPEC - over Tehran's nuclear program.
Both the US and Iran described Thursday's talks as productive, after Iran agreed to allow UN inspectors into a newly disclosed uranium enrichment plant.
While tensions between Iran and the West over the nuclear program have supported prices at times in recent years, but analysts said the current situation could quieten down again.
