Oil slips on U.S. demand worries

By Ikuko Kao

LONDON (Reuters) - Oil slipped on Thursday amid growing signs of economic slowdown in the United States, the world's top energy consumer.

U.S. crude fell 41 cents to $104.42 a barrel by 1730

GMT, while London Brent crude was down by 67 cents to $103.08.

The losses came in choppy trading after U.S. data showed jobless claims the highest since 2005, stoking fears of a significant economic slowdown.

U.S. oil demand so far this year is lagging last year's consumption as soaring prices add pressure to consumers already hobbled by a credit crunch and housing slump.

"With the U.S. apparently sliding into a recession, oil market rallies will probably not derive as much strength from gasoline this year," Jan Stuart, economist with UBS, said in a research note.

Thursday's losses were tempered by weakness in the U.S. dollar, which has underpinned a boom across all commodities denominated in the currency in recent months.

Earlier on Thursday, U.S. crude fell as low as $103.21.