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NEW YORK, KOMPAS.com - Oil prices retreated on Friday (11/06/2010), after a decline in U.S. retail sales sparked worries about the economic recovery measures in the country's largest energy consumer in the world.

New York's main futures contract, light sweet crude for July delivery, slid 1.70 dollars to 73.78 dollars per barrel. Contract even breached 76 U.S. dollars in daily trading on Thursday.

Brent North Sea crude oil for July delivery fell 94 cents to 74.35 dollars per barrel.

Investors are concerned by a U.S. government report that retail sales may fall for the first time in eight months. The decline was sparked fears that consumer spending, a key driver of U.S. economic recovery wheel, could weaken. "The fact that the United States is the best users of the global oil have been made market concerned that demand may not jump much, "said analyst Bart Melek from BMO Capital Markets.

But market sentiment is much better than last week, when fears of a default (failed) government debt in Europe and slowing growth in China gripped investors, he said. "This sentiment was clearly better now than last week," Melek said.