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Europe’s Woes & Asia’s Slower Growth Weaken Oil Prices

October 8, 2012 at 23:14 by Vladimir Vyun

Crude oil declined today on concerns about economic growth in Europe and Asia. The World Bank predicted that Asian economies will expand with the slowest pace since 2001. Growth in East Asia (which excludes Japan and India, but includes China) will probably be at 7.2 percent in 2012, compared to 8.3 percent in the previous year. China and the United States are the biggest consumers of crude, making up 32 percent of world consumption.

The situation in Europe is also weighing on oil prices. European Union leader will meet later this week to discuss their problems. Traders are unsure about the outcome of these meetings and such uncertainty makes them reluctant to buy riskier assets.

November futures for crude oil fell as much as $1.17 to $88.71 per barrel on NYMEX today. Brent crude was down $0.2 (0.18 percent) to $111.82 as of 23:08 GMT on ICE.

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