Oil price up $2 as economy slows

Oil prices climbed more than $2, tipping beyond $106 a barrel, after weaker-than-expected job data indicated further signs of a slowing economy.

Crude oil futures for May rose $2.4 a barrel to settle at $106.23 in New York. Meanwhile London Brent crude, finished $2.38 higher at $104.9.

Commodities are viewed as an attractive alternative investment to dollars.

Reports of a fire at an Exxon Mobil US refinery also contributed to the rise, prompting fears over petrol supplies.

The summer is typically a time of high petrol consumption in the US, as people take holidays, so any signs that supplies will be disrupted can help push up prices.

The dollar weakened in relation to the euro after a official data showed employers cut 80,000 jobs in March - the biggest monthly job decline in five years.

"Crude futures were higher as the dollar weakened," said Nimit Khamar, an analyst with Sucden in London.

When the dollar weakens it becomes cheaper for foreign buyers to invest in commodities.

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