Oil fell to three-month lows of around $114 per barrel on Friday and was on course for its steepest weekly fall since December after a weak U.S. jobs report added to doubts about the pace of economic recovery in the world's biggest oil consumer.
U.S. employers hired 115,000 workers last month, the Labor Department said on Friday, which was below the 170,000 new jobs forecast, and led to worries that growing appetite for oil could stall.
"The poorer U.S. economic data from the past two days have sparked doubts that oil demand will recover in the U.S., the world's largest consumer of oil," Commerzbank oil analysts Carsten Fritsch and Eugen Weinberg said in a note.
By 1344 GMT, Brent crude oil futures lost $2.08 to $114 a barrel, lows not seen since early February this year, having touched earlier intra-day lows of $113.82 per barrel earlier in the session.
U.S. crude fell by $2.27 to $100.27, levels not seen since February.
"The report disappointed the market as employment increased by only 115,000 jobs ... Oil markets were already under severe downward pressure overnight as global equities swooned (except Japan) on fears that macro conditions are beginning to deteriorate at a faster pace," Addison Armstrong, senior director of market at Tradition Energy, said in a note.
Analysts are seeing increasing downside risks to prices. Nic Brown, Natixis' head of commodities research, said the bank's models indicate fair value for Brent at $110 a barrel.
"Anything north of $120 contained a large amount of political premium as the negotiations between Iran and the West appeared to make some progress, and clearly some of the premium has been taken out," Brown said. "The very tight supply picture from earlier in the year has also eased a little."
Oil and commodities also plunged across the board on Thursday as slower-than-expected growth in the U.S. services sector sparked a wave of selling and prices crashed through technical support levels.
"Many funds are still on the long side of crude oil, but the global economic recovery remains something a bit elusive," said Olivier Jakob from Zug-headquartered consultants Petromatrix.
Brent has so far fallen by around 4.7 percent this week, its steepest slide since the week ending Nov. 20, while U.S. oil has lost around 4.3 percent.
"CFTC (Commodity Futures Trading Commission) data over the last couple of weeks has seen investors cutting back on exposure to futures, so with less support in terms of commitment and a low volatility environment, people are taking profits on oil," BNP Paribas head of commodities strategy Harry Tchilinguirian said.