Oil rose $1 a barrel today to bounce back after losses in the previous session as investors focused back on a weakening US dollar and the US economic outlook.
US crude rose $1.06 (€0.68) to a session high of $104.85 (€67.53) a barrel mid-morning but later pared gains to stand at $104.75 (€67.46).
London Brent crude was up 84 cents to $103.36 (€66.57).
US oil consumption is falling as soaring energy prices trouble consumers already hit by a credit crunch and housing slump.
Oil fell yesterday after US government data showed jobless claims last week had risen to their highest since 2005, signalling that the US economy was deteriorating.
The dollar ticked lower versus other major currencies today in technically led trade ahead of a US jobs report that will further shape perceptions of US oil demand and affect the dollar.
Economists predict the US economy likely cut 60,000 jobs in March for its third straight month of losses, with the unemployment rate seen rising to 5.0 percent, from 4.8 per cent in February.
The dollar's weakness has boosted oil and other commodities denominated in the currency as investors pour money into the asset class to hedge against inflation.