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Friday, 24 May 2013

Oil falls to below $96 amid slowing global economy

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Reported by: AP/UNBconnect
Reported on: May 11, 2012 11:37 AM
Reported in: Business

SINGAPORE, May 11 (AP/UNB) - Oil prices fell to below $96 a barrel Friday in Asia amid concern global crude demand will grow less than previously expected this year.

Benchmark oil for June delivery was down $1.16 to $95.92 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 27 cents to settle at $97.08 in New York on Thursday.

Brent crude for June delivery was down 46 cents at $112.27 per barrel in London.

Crude has slumped about 10 percent from $106 last week as traders mull signs the economies of the U.S., Europe and China are slowing.

Analysts are also eyeing rising U.S. crude inventories, which rose last week to a 22-year high while OPEC, led by Saudi Arabia, increased oil production by 320,000 barrels per day in April, according to Platts, the energy-information arm of McGraw-Hill Cos.

"The energy market is vulnerable to additional negative guidance from the U.S. economy, a slowing in the Chinese economic growth engine and a renewed heightening in European debt worries," energy trader and consultant Ritterbusch and Associates said in a report.

In other energy trading, heating oil was down 2.1 cents at $2.96 per gallon and gasoline futures slid 2.7 cents to $2.98 per gallon. Natural gas fell 1.2 cents at $2.48 per 1,000 cubic feet.

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