Oil rises above $68 ahead of US jobs report

[September 04, 2009]  SINGAPORE (AP) -- Oil prices peaked above $68 a barrel Friday in Asia as investors looked to a U.S. unemployment report later in the day for signs of economic recovery.

Benchmark crude for October delivery was up 44 cents at $68.40 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract Thursday slipped 9 cents to settle at $67.96.

Oil has traded near $68 a barrel for the last three days as traders look for clues on the strength of the U.S. economy.

The Labor Department later Friday is scheduled to announce the August jobs report, one of the most closely watched indicators by investors. Economists expect the unemployment rate to edge up to 9.5 percent from 9.4 percent, while the number of layoffs is expected to slow to 225,000 from 247,000.

"If we get a good jobs number, oil could be back up over $70," said Gerard Rigby, an energy analyst with Fuel First Consulting in Sydney. "But in the last week, the market has been ignoring a lot of the positive economic news."

Trading will be closed in the U.S. on Monday for the Labor Day holiday.

In other Nymex trading, gasoline for October delivery was steady at $1.80 a gallon, and heating oil rose 0.55 cent to $1.74 a gallon. Natural gas fell 3.2 cents to $2.48 per 1,000 cubic feet.

In London, Brent crude was up 28 cents at $67.40.

[Associated Press; By ALEX KENNEDY]

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