Oil tumbled more than 2% today, giving up most of its gains for the week after the latest government data showed hiring in the US is at a virtual standstill.
The US Labour Department said that employers added the fewest jobs in nine months and the unemployment rate rose to 9.2% in June.
A slowdown in hiring means that gasoline demand could remain stagnant as fewer workers join the daily commute and consumers limit driving and trips to the gas station as they watch their spending.
Benchmark West Texas Intermediate crude for August delivery gave up $2.41, or 2.4%, at $96.26 per barrel in midday trading on the New York Mercantile Exchange.
In London, Brent crude lost 85 cents at $117.74 per barrel on the ICE Futures exchange. WTI started the week around $95 a barrel and rose as high as $99.42 during trading yesterday.
Gasoline futures also dropped following the jobs report. The contract for August delivery gave up 4 cents at $3.0864 per gallon on the Nymex.
