Oil Set for Weekly Drop on Signs Economic Recovery May Falter

Jan. 15 (Bloomberg) -- Crude oil fell, poised for the first weekly decline in five, after rising U.S. jobless claims and weaker retail sales dented confidence in the strength of the economic recovery.

Oil has fallen for a fifth day as sales at retailers slipped 0.3 percent in December after a 1.8 percent gain in November, according to the Commerce Department in Washington. Weekly jobless claims in the U.S., the world’s largest oil- consuming nation, climbed 2.5 percent, the most in five weeks, the Labor Department said.

“It’s getting more and more difficult to maintain prices at around $80, though last week it seemed like it was going to be the floor,” said Michael Fitzpatrick, vice president of energy at MF Global in New York. Prices are likely to move within a $70 to $80 range without “incontrovertible signs that the economy is improving.”

Crude oil for February delivery fell as much as 47 cents, or 0.6 percent, to $78.92 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $78.98 at 9:08 a.m. Singapore time. Yesterday, the contract fell 26 cents to $79.39. Futures are poised for a decline of 4.6 percent this week, the first since the week ending Dec. 11.