Nov. 5 (Bloomberg) -- Crude oil erased losses and traded near $80 a barrel after a Labor Department report showed that fewer Americans filed claims for unemployment benefits than forecast last week.

Crude for December delivery traded at $80.43 a barrel, 3 cents up, on the New York Mercantile Exchange as of 1:43 p.m. London time. It earlier fell as much as 82 cents, or 1 percent, to $79.58 a barrel.

To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net

Last Updated: November 5, 2009 08:45 EST