Oil fell below $100 a barrel for the first time since February as U.S. employers added fewer workers than forecast, stoking concern that demand won’t be enough to cap inventories at their highest level in 21 years.

Futures declined as much as 4.6 percent after Labor Department figures showed payrolls climbed 115,000, the smallest gain in six months. The median estimate of economists called for a 160,000 advance. Elections in France, Greece, Italy and Germany this weekend may determine how the region’s governments respond to Europe’s financial crisis.

The jobless rate fell to a three-year low of 8.1 percent, and earnings stagnated. The participation rate, which indicates the share of working-age people in the labor force, fell to 63.6 percent, the lowest level since December 1981, from 63.8 percent.

Crude oil for June delivery dropped to $97.51, the lowest level since Feb. 10. Prices are down 6.3 percent this week, heading for the biggest weekly decline since September.

Brent oil for June settlement fell $3.85, or 3.3 percent, to $112.23 a barrel on the London-based ICE Futures Europe exchange. The contract reached $111.76, the lowest level since Feb. 2. The European benchmark contract’s premium to New York futures widened to $13.90 from $13.54 yesterday.

In early trading Friday, the price of gold declined against the dollar to strengthen on the eve of the publication of data on unemployment in the U.S., as well as on the background of weak demand for physical precious metals.

On Friday, the bidders expected publication of unemployment data in the U.S. in April. Published data have been mixed: on one hand the number of new jobs that were created in non-agricultural sectors of the U.S. economy, was 115 thousand, with an average forecast of 158 thousand, but with a different figure for the previous two months were revised upward by a total of 53 thousand. In addition, the unemployment rate in April fell to the level of 8.1% compared with an expected value for March and 8.2%.

At the same time, investors remained concerned about weak demand for physical gold market. Thus, the depreciation of Indian rupee made gold more expensive for the people of India, the world's largest consumer of the precious metal. In addition, according to some traders, Indian jewelers are planning a new round of strikes, which can also lead to a drop in the value of gold.

The cost of the June gold futures on the COMEX fell today to $ 1626.8 an ounce, then rose to $ 1648.0 an ounce and is currently trading at $ 1638.2 an ounce.

Change % Change Last

Gold 1,636 -18 -1.06%

Oil 102.64 -2.58 -2.46%