Oil prices turn lower

NEW YORK (CNNMoney.com) -- Oil prices fell for the fourth straight day, following U.S. stocks, as investors remained bearish about Europe's prospects.

Gasoline prices fell for the first day in five, dipping to $2.922 a gallon from $2.929 the day before, according to motorist group AAA.

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What prices are doing: Crude oil for June delivery fell $2 to settle at $75.11 a barrel Friday, after dropping more than 3% the day before.

Crude prices surged Monday amid optimism about Greece's $146 billion bailout and the possibility that the Gulf of Mexico spill could halt supply. But the gains quickly faded, sending prices down some $9, or 11%, as fears of that the European debt crisis could spread shook the global markets.

Despite the whipsaw action, crude prices are still nearly 30% higher than this time last year.

What's moving the market: Crude prices dropped amid choppy trading as lower U.S. stocks and persistent concerns over instability in Europe overshadowed a better-than-expected jobs report.

On Thursday, an apparent technical glitch pushed the Dow Jones industrial average (INDU) down nearly 1,000 points, or 9.2%, which was the biggest intraday percentage in history. The index quickly rebounded, although it still ended 348 points lower.

Stocks started slightly higher Friday, before turning lower on continued pessimism in the market. Crude oil followed suit, despite a weaker dollar, signaling a low appetite for risky assets.

The greenback dipped 0.7% against the euro to $1.270 - the first decline in several trading days. Signs of stability in Europe, particularly Germany's reported support of the Greek bailout, bolstered the euro.

Typically, a weaker dollar makes crude, which is priced in the U.S. currency, cheaper for foreign investors, boosting demand and prices. Though down in Friday trading, the dollar was still near 14-month highs against the European currency.

A stronger-than-expected jobs report from the government did little to boost morale. The Labor Department said the U.S. added 290,000 jobs in April, more than the 187,000 economists had forecast.

What analysts are saying: "The focus of the market today will be on whether and how quickly the stock market can snap back," said Tom Pawlicki, commodities analyst at MF Global. "If stocks are able to rally back today, it could boost energy prices."

Although crude prices turned higher Friday, Pawlicki said focus on Greece and contagion fears are likely to put downward pressure on oil prices over the near term, especially as continued chaos in Europe sends investors away from risky assets such as equities and non-U.S. currencies.

Many analysts said that a bottom for crude oil prices is hard to determine, given the potential depth and breadth of Europe's woes. This could strengthen the dollar further, as investors flee to so-called safe-haven assets.

"Considering the fact that yesterday's sell-off began with a problem in Greece that is unlikely to be resolved soon ... oil prices could have a tough time advancing," said Pawlicki.

Looking ahead: Next week, a spate of weekly economic reports are due, including crude inventory and jobless claims, which tend to be market movers.

However, as was the case this week, even positive economic news in the U.S. could do little to boost oil prices, if turmoil persists abroad, analysts say.