By Keith Wallis
SINGAPORE, Sept 7 (Reuters) - Oil prices fell on Monday as
concerns of global oversupply, a firmer dollar and lacklustre
U.S. nonfarm payroll data on Friday weighed on oil markets.
The long Labor Day holiday in the United States may also
lead to thin trading later in the session.
"U.S. nonfarm payrolls turned out weaker than expected
causing oil prices to fall on anticipations of a weaker
economy," Singapore's Phillip Futures said in a Monday note.
Brent crude for October delivery LCOc1 fell 25 cents to
$49.36 a barrel as of 0419 GMT, after ending the previous
session down $1.07, or 2.1 percent. The European benchmark fell
almost 1 percent last week.
U.S. crude for October delivery CLc1 , also known as West
Texas Intermediate, was down 22 cents at $45.83, after settling
70 cents down, or 1.5 percent, in the previous session.
"We would think that prices should be moving downwards this
week as prices would hardly find support," Phillip Futures said
in its note.
U.S. jobs data on Friday showed nonfarm payrolls increased
173,000 last month compared with economists forecasts of a
220,000 gain.
A surprise gain in U.S. crude stocks of 4.7 million barrels
in the week to Aug. 28, the biggest one-week rise since April,
added to worries of an oil glut. EIA/S
That was despite the number of U.S. oil rigs falling by 13
to 662 last week, according to Baker Hughes (NYSE:BHI) data, the first
decline in rig counts in seven weeks.
A firmer U.S. dollar .DXY also hurt oil prices by making
the commodity more expensive for holders of other currencies.
Investors are now awaiting second quarter eurozone GDP
growth figures on Tuesday to give oil further direction.
"Although it would seem that heavier emphasis has been
placed on both China and the U.S., Eurozone's demand remains
important as well. Provided Eurozone Q2 GDP remains strong, we
could be seeing some support to oil prices," Phillip Futures
said.
(Editing by Tom Hogue)