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Wednesday, 22 February 2012

Oil Declines From Nine-Month High on Concern Demand Will Falter on Economy - Bloomberg

Oil fell on speculation that prices near a nine-month high will curb demand as the global economy slows and crude stockpiles rise in the U.S., the world’s biggest consumer of the commodity.
Futures slid as much as 0.5 percent, heading for the first decline in more than a week, as crude’s relative strength index signaled prices may have risen too quickly. U.S. inventories climbed 1.5 million barrels last week, a Bloomberg News survey showed. Manufacturing in China, the second-biggest oil user, may shrink a fourth month, according to a purchasing managers survey. Bank of England Deputy Governor Charlie Bean said a second bailout for Greece may not end Europe’s debt crisis.
“Demand forecasts for the U.S. remain neutral to bearish,” said Jonathan Barratt, chief executive of Barratt’s Bulletin, a commodity markets newsletter in Sydney, who sees resistance for New York crude at about $106 a barrel. “The European situation is going to be a slow grind.”