Sept. 2 (Bloomberg) -- Oil extended declines in New York after a report showed employment in the U.S. unexpectedly stagnated in August and the jobless rate held at 9.1 percent.

Crude for October delivery fell as much as $2.65 to $86.28 a barrel in electronic trading on the New York Mercantile Exchange and was at $86.47 at 1:34 p.m. London time.

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