Oil was steady near $74 on Friday, headed for a third consecutive weekly drop, as the recovery of the US economy has yet to boost fuel demand. The US economy probably grew at an annual rate of 4.6 percent in the fourth quarter, up from 2.2 percent in the third, a Reuters poll showed ahead of the data, due at 1330 GMT.
US jobless claims fell less than expected last week, the government reported on Thursday. President Barack Obama said in his State of the Union address on Wednesday that job creation would be his top priority. "Even though the US economy is growing, the key figure is the unemployment rate," said Clarence Chu, an energy trader at Hudson Capital Energy in Singapore.
"Until I see that the US is consistently creating jobs for a few months in a row, I'm not convinced that demand will increase." Oil demand in the US shrank 2 percent in the past four weeks from a year earlier. Japanese crude imports fell 2.6 percent in December and gasoline sales tumbled 2.4 percent, the Ministry of Economy, Trade and Industry (METI) said on Friday.
US oil for March delivery gained 9 cents to $73.73 a barrel by 0504 GMT. Prices touched $72.65 on Wednesday, the lowest intra-day price since December 21, and are still down 12 percent from a 15-month high of just under $84 on January 11. London ICE Brent crude for March climbed 11 cents to $72.24.
Prices fell on Thursday after the US dollar rose to its highest level in more than six months against the euro, which fell on concern over potential fiscal crises in European economies including Greece and Portugal. A stronger dollar often indicates investors are funnelling cash away from riskier assets such as commodities. It also can curb demand for crude oil from buyers who hold other currencies, since oil is priced in dollars.