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Oil slips after posting biggest gain in 2 months

Associated Press Modified: October 5, 2012 at 7:31 am •  Published: October 5, 2012

The price of oil retreated to around $91 a barrel on Friday after posting big gains, as traders turned their attention to the release later in the day of a monthly U.S. jobs report.

By early afternoon in Europe, benchmark oil for November delivery was down 70 cents to $91.01 a barrel in electronic trading on the New York Mercantile Exchange. On Thursday, tensions between Syria and Turkey gave oil prices their biggest jump in two months. Oil settled at $91.71 per barrel, up by $3.57, or 4 percent, in New York.

The price of oil rose after Turkey's military fired on targets in Syria for the second day. The Middle East and North Africa account for about a third of global oil production. Any tension in the region makes traders nervous about a disruption to supplies.

Oil also got a boost from a falling dollar, which tends to influence investors to buy commodities like oil and gold.

On the other hand, crude prices were weighed down by comments from Saudi oil minister Ali Al-Naimi, who said Thursday that supplies were plentiful and and that there was room, if necessary, for output increases.

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