Sept. 13 (Bloomberg) -- Oil futures fluctuated in New York amid concern that Europe’s debt crisis and a faltering economic recovery in the U.S. will reduce demand for raw materials.
Futures pared earlier gains after the International Energy Agency cut global oil demand forecasts for this year and next because of the global economic outlook. Prices advanced as much as 1.2 percent earlier today before an Energy Department report tomorrow that may show U.S. oil supplies fell for a second week.
“Demand growth has slowed,” David Fyfe, head of the IEA’s industry and markets division, said in a telephone interview from Paris. “This is market that’s been tightening for the past 12 to 15 months. This year the tightening has been more about supply outages than demand.”
Crude for October delivery was at $88.26 a barrel, up 7 cents, in electronic trading on the New York Mercantile Exchange at 4:27 p.m. Singapore time. It earlier rose as much as $1.02 to $89.32 a barrel. The contract yesterday increased 95 cents to $88.19. Prices are 14 percent higher the past year.
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