Oil pulled back in Asia today as regional stock markets eased and investors awaited a US report on unemployment which could give fresh clues on the health of the recession-hit economy.
New York's main contract, light sweet crude for September, was down 26 cents to $71.68 a barrel, after hitting a five-week high of $72.42 yesterday.
Brent North Sea crude for delivery in September tumbled 29 cents to $74.54 a barrel after briefly touching $76.00 Thursday, its highest level this year.
"Oil is retreating a bit and that's not surprising considering that Asian equity markets are also easing," said Victor Shum, senior principal at energy consultancy Purvin and Gertz in Singapore.
"Oil has followed equities for quite a few months already." Shum said however there is still caution in the oil market because of weak energy demand from major economies hit by the global economic downturn.
"The market fundamentals really do not provide support to the current price levels which look vulnerable," he said.
Investors were also awaiting the release today by the US Labor Department of the July jobs report which analysts expect will provide a fresh indication of the prospects for recovery for the world's biggest economy, Shum said.
