Oil Prices Falls Reaching 63 Dollars

prices fell sharply on Monday, extending heavy losses seen last week caused by poor jobs data in the United States, the world’s biggest energy-consuming nation, analysts said.

 Prices slumped despite a new pipeline attack in Nigeria, an important exporter of oil. In London, Brent North Sea crude for delivery in August dropped 1.73 dollars to 63.88 dollars a barrel.

New York’s main contract, light sweet crude for August delivery, shed 1.58 dollars to 64.05 dollars a barrel. “Prices are extending their losses from last week based on the poor jobs report in the United States,” said Tony Nunan, an energy risk manager with Mitsubishi Corp.

 ”People are starting to wonder about the strength of the US economic recovery… This does not look good for oil demand because it means that consumer spending will remain weak.” A closely watched US Labor Department report last week showed US job losses had surged more than expected to 467,000 in June, pushing the unemployment rate to a new 26-year high of 9.5 percent.

The report, seen as one of the best indicators of economic momentum, reversed the improvement seen the previous month when job losses fell to 322,000. Crude futures slid on Monday despite fresh unrest in Nigeria.