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London - World oil prices sank on Friday as traders took profits from a large rally, and awaited more vital economic data in top global crude consumer the United States.
New York's main contract, West Texas Intermediate for delivery in August, fell 56 cents to $98.11 a barrel, after surging by $2.02 on Thursday.
Brent North Sea oil for August reversed by 89 cents to $117.70 in London morning deals, one day after rocketing by $4.97.
Traders will focus later on Friday on the publication of the US non-farm payrolls.
"Today, much will depend on June's NFP numbers from the United States," said analyst Andrey Kryuchenkov at VTB Capital.
Crude futures had surged Thursday on the back of positive economic data from around the world.
Payrolls firm ADP said that private businesses added 157 000 jobs in June, a solid jump after the weak 36 000 job increase in May.
The ADP figures raised expectations for Friday's much-awaited US non-farm payrolls (NFP) data for June.
Sentiment was also bolstered by news of rebounding industrial output in eurozone powerhouse Germany.
"Oil prices rose yesterday on increased optimism over the world economy," said Westhouse Securities analyst Peter Bassett.
"In the US, economic data showed a better than expected number for job creation. In addition, May German industrial output increased more than expected."
German industrial production jumped in May, gaining a monthly 1.2% following a decline of 0.8% in April, official data showed.
"This optimistic mood has been somewhat tempered this morning by the delayed reaction to yesterday's official US stock figures," added Bassett.
The US government's Department of Energy announced Thursday that crude inventories fell 900 000 barrels in the week ending July 1. That was well short of market forecasts for a heavy 2.4-million-barrel drop.
The DoE added that gasoline or petrol reserves fell 600 000 barrels last week. That confounded expectations for a gain of 200 000 barrels, and indicated stronger demand as prices fell and summer vacations began.
