Reuters Oil pulled lower by dismal U.S. GDP data

Fri Feb 27, 2009 3:37pm EST
NEW YORK (Reuters) - Oil prices fell 1 percent on Friday, pulled lower by U.S. data showing the economy of the world's largest energy consumer shrank more than expected in the final three months of 2008.

U.S. crude fell 46 cents to settle at $44.76 a barrel after touching a session low of $42.55, reversing a three-day rally. London Brent crude fell 16 cents to $46.35 a barrel.

The losses came after government data showed U.S. gross domestic product shrank 6.2 percent in the fourth quarter versus a year earlier, marking the deepest slide since 1982 and outpacing analyst forecasts for a 5.4 percent contraction.

"Oil markets are reverting back to economic concerns," said Tom Bentz, AN analyst at BNP Commodity Futures Inc.

Global economic weakness has driven a slump of more than $100 in crude prices since July's peaks as the economic crisis cuts into fuel demand from businesses and consumers.

Adding downward pressure to oil prices on Friday, the U.S. Energy Information Administration said that American energy demand fell last year to the lowest level in a decade. more...