Oil prices trading down two percent on latest US jobs data

Both Brent and Light crude oil prices are trading down around two percent on Thursday as the latest US jobs data sends stock markets and in turn, oil prices lower.

Light crude oil futures for April delivery recently traded $78.39 a barrel on the NYMEX, while in London, Brent crude on the ICE Futures Exchange traded $1.38, or 1.8%, lower at $76.71 a barrel.

The US Labor Department reported an increase of 22,000 in initial jobless claims, to 496,000 in the week ended Feb. 20, the highest since November. Economists had given an average forecast for a decline of 13,000.

The Fed chairman reiterated Wednesdays comments that US interest rates will have to stay low for a lengthy period to counter a weak job market. But the latest economic reports Thursday underlined his point about soft job markets.

Oil traders said US oil demand remained lacklustre but the market appeared to be taking its lead from the US dollar, which weakened after key testimony on monetary policy to Congress from Ben Bernanke, chairman of the Federal Reserve.

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