Oil eased in Asian trade on Friday as investors waited for the release of key US payroll and unemployment figures, analysts said.

New York's main contract light sweet crude for November delivery dropped 58 cents to $70.24 a barrel.

Brent North Sea crude for November delivery fell 47 cents to $68.72.

The US government is due to release later Friday the payroll data and unemployment figures for September which investors hope will provide further clues on the pace of recovery in the world's biggest energy consuming country.

"The US economy probably returned to growth in June of this year and it is too early to see positive jobs growth but this will become a litmus test of the recovery in the next couple of months," analysts from Rabobank said in a report.

Rabobank's analysts expect the US payroll data to show 175 000 job losses for September while the unemployment rate for last month is tipped to rise to 9.8 percent from 9.7 percent in August.

Investor concerns over the US recovery persist amid mixed economic data.

Figures released Thursday by the Labor Department showed new claims for US unemployment benefits rose unexpectedly in the week to September by 17 000 to 551 000.

However, data from the Commerce Department released Thursday showed US household spending jumped 1.3 percent in August, driven by auto sales helped by the "cash for clunkers" incentives.

The rise in spending came as incomes rose 0.2 percent in the month.

Investors are also monitoring the situation in the Middle East as US President Barack Obama Thursday demanded swift and "constructive" action from Iran following crucial nuclear talks, and warned that his patience for dialogue with Tehran was limited.

Obama conceded the meeting between world powers and Tehran in Geneva, which included the highest-level direct talks between the United States and Iran in three decades, was a "constructive" start to defusing a nuclear standoff.

But he warned that Washington was ready to quickly clamp "increased pressure" on Iran, an apparent code word for sanctions, if it sought to promote endless talks on its nuclear program simply as a delaying tactic.

"Today's meeting was a constructive beginning but it must be followed with constructive action by the Iranian government," said Obama, who came to power offering to talk to some of America's most implacable foes.

Iran is the world's third largest crude exporter and traders fear a possible supply disruption should tensions between Tehran and the US escalate further.