Oil falls to near $90 on weak US jobs market

Oil prices fell to near $90 a barrel today as a disappointing U.S. jobs figure and a move by China to cool off economic growth dampened expectations of higher crude demand.

By early afternoon in Europe, benchmark oil for February delivery was down $1.06 to $90.34 a barrel in electronic trading on the New York Mercantile Exchange. Crude lost 46 cents to settle at $91.40 on Thursday.

The Labor Department said Thursday that more people filed for unemployment aid last week in the U.S., tempering optimism that a strong economic recovery is under way.

In China, meanwhile, the central bank raised the amount of money banks must keep on reserve, an attempt to counter inflation and hold back growth. This, in turn, was seen a possible sign that China’s oil consumption would be reduced.

Some analysts expect the U.S. economy to stumble this year, weakening crude appetite. Capital Economics forecasts the oil price will fall to $75 in 2011.

However, most economists — eyeing signs of improving U.S. crude demand joining still-strong consumption in emerging markets — expect oil to breach $100 this year.