US job losses send oil lower

Crude oil prices were lower at the close of floor trade in New York after the US Labor Department reported that the US lost 598,000 more jobs in January, a sign that the recession is deepening and that demand for oil and oil products will likely continue to decline.

The news for jobs continued to be bad as Chrysler said it would close four plants temporarily due to slow automobile sales in the US.

March contracts for West Texas Intermediate crude was down 99 cents to $40.18 per barrel at the close of floor trade on the New York Mercantile Exchange, while at last report Brent crude for March delivery had dropped $1.11 to $45.35 per barrel on the ICE Futures Europe exchange in London.

In afternoon trade, Nymex March gasoline futures were down a cent to $1.27 per gallon while March heating oil added a cent to $1.38 per gallon and March natural gas was 13 cents higher to $4.78 per million British thermal units.

Despite continued declines in oil prices and in demand, retail gasoline prices were up just short of a penny to $1.91 per gallon on average across the US, with prices rising as refineries cut production to close for maintenance.