Oil prices fall after hitting 76 dollars

Oil prices fell Thursday after briefly hitting the highest level this year at 76 dollars a barrel in London as the market awaited key US job figures to gauge prospects for economic recovery.

New York's main contract, light sweet crude for September, ended at 71.94 dollars, down three cents from its closing price on Wednesday, after hitting a five-week peak of 72.42 dollars.

London's Brent North Sea crude for delivery in September dropped 68 cents to close at 74.83 dollars. It had earlier climbed to 76.00 dollars.

Both contracts had closed higher on Wednesday as investors returned to commodities including oil, drawn by the weakening US currency which makes crude futures an attractive investment option, traders said.

Crude futures are priced in the US currency and become cheaper when the dollar falls.

Analysts said the oil market was awaiting the US Labor Department's report Friday on unemployment and payrolls for clues on the strength of stabilization in the long recession.