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Oil falls to 12-week low on demand worries
 NEW YORK (Reuters) - Oil fell to its lowest level in nearly three months on Tuesday, extending a steep slide since mid-July on mounting evidence high prices and a souring economy were cutting into world energy demand. The drop coincided with a firmer U.S. dollar, which may have reduced the appeal of commodities to some investors playing the strong negative correlation between the markets in recent months, analysts said.OPEC President Chakib Khelil said on Tuesday oil could fall further to $70 to $80 a barrel in the long term but added he did not think the producer group should consider cutting output at this point. U.S. crude dropped $2.54 to settle at $122.19 a barrel after dipping as low as $120.42, its lowest since May 6. Brent crude fell $3.13 to $122.71. Oil has fallen from a record peak of $147.27 set on July 11, pressured by signs that high prices and an economic slowdown are curbing demand, especially in the United States, the world's largest oil consumer. Posted by: Steve White 2008-07-30 |
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