U.S. employment and jobs data weaker than forecast, and signaled cooling economy of world’s largest oil consumer. Oil prices fell on Thursday.

Activity weakened due to the U.S. Independence Day holiday. Brent crude futures fell 60 cents, or 0.69%, to $86.74 a barrel, while WTI crude futures were down 63 cents, or 0.75%, to $83.25 by 0651 GMT.

Geopolitical concerns and hurricane season risks remain, and underlying physical market strength looks set to weaken further. Physical markets are trading for September cargoes after the summer when demand could weaken in part because of hurricane risks.

U.S. crude shipments to Europe fell to a two-year low in June as European buyers bought cheaper regional and West African oil, but some recovery in volumes is still possible in July and August.

Analysts say the decline in oil prices was partly due to investors taking profits after recent gains.

Oil futures on both sides of the Atlantic are heading for a fourth weekly gain.

The daily weakness in oil prices in today’s Asian session appears to be a form of profit-taking trend, with WTI crude managing to hold above the important minor support of $81.90 a barrel.

Also underscoring expectations for lower demand were data from the U.S. First-time applications for U.S. unemployment benefits rose last week, while the number of unemployed reached a two-and-a-half-year peak towards the end of June.

Also, the ISM Non-Manufacturing Index, a measure of U.S. service sector activity, fell to a four-year low of 48.8 in June, well below the consensus of 52.5.

However, analysts say weaker economic data could add to the Fed’s arguments to start cutting interest rates, which would be supportive for oil markets because lower rates could boost demand.

Weaker U.S. data led markets to raise the probability of a September rate cut to 74% from 65%, pricing in 47 basis points of easing for this year.

The low U.S. interest rate environment could limit the dollar’s ​​strength, at least in the short term, and support WTI crude’s current bullish trend.

U.S. crude and fuel inventories fell more than expected last week.