Oil prices slip on US growth slowdown

30th July 2010, Comments 0 comments

World oil prices fell Friday as traders digested news of a sharp economic slowdown in leading energy consumer the United States.

New York's main contract, light sweet crude for delivery in September, weakened 69 cents to 77.67 dollars a barrel.

Brent North Sea crude for September retreated 55 cents to 77.04 dollars in afternoon London deals.

US growth slowed dramatically to 2.4 percent in the second quarter of this year, from an upwardly revised 3.7 percent in the first three months of the year, official data showed, prompting fears the recovery is losing steam.

The number was slightly lower than the 2.5 percent rate expected by analysts but suggested the brakes may have been slammed on an already tepid rebound.

"The figures came in slightly under expectations ... and are thus likely to increase concerns that the US recovery will be sluggish," said economist Scott Corfe at the Centre for Economics and Business Research consultancy.

Revisions to previous data showed the US recession was deeper than previously thought, with the worst economic contraction at 6.8 percent in the final quarter of 2008.

© 2010 AFP

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