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Brent dipped 63 cents, or 0.8%, to $80.96 a barrel by 1140 GMT.
U.S. West Texas Intermediate crude (WTI) was down 69 cents, or
0.9%, at $75.03.
Expectations of further rate hikes in the world's largest
economy and in Europe have clouded the global growth outlook and
driven both crude benchmarks down more than 5% so far this week,
their worst drop since early February.
A strengthening dollar is also making oil more expensive for
holders of other currencies. Global shares, which often move in
tandem with oil prices, hit a two-month low on Friday as
investors dumped banks on fears of contagion after a capital
raising at Silicon Valley Bank.
U.S. Federal Reserve Chair Jerome Powell has warned of higher
and potentially faster rate hikes, saying the Fed was wrong in
initially thinking inflation was "transitory". Its next decision
meeting is planned for March 21-22.
Broader U.S. employment data due at 1330 GMT looms as a crucial
barometer of the health of the U.S. labour market, considered
tight, and as an indicator on the direction of interest rates.
Nonfarm payrolls likely increased by 205,000 jobs last month,
according to a Reuters survey.
"A forecast-beating number will be the final nail in the coffin
for rate doves and should provide fresh ammo for oil bears," PVM
analyst Stephen Brennock said.
On the supply side, the United States was reported to have
privately urged some commodity traders to shed concerns about
shipping price-capped Russian oil in a bid to shore up supply.
Investors are closely monitoring export cuts from Russia, which
decided to trim oil output by 500,000 barrels per day in March.
(Additional reporting by Sudarshan Varadhan and Muyu Xu in
Singapore; editing by Shounak Dasgupta and Jason Neely)
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