Oil slides on US energy report

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Oil slides on US energy report

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Oil prices fell heavily as dealers digested fresh signs of weakening US energy demand.

27 October,2011 03:19 am

World oil prices fell heavily on Wednesday as dealers digested fresh signs of weakening US energy demand and awaited the outcome of an EU summit aimed at resolving the euro debt crisis.New Yorks main contract, light sweet crude for delivery in December, dived $1.70 to $91.47 per barrel.Brent North Sea crude for December delivery slid $1.51 to $109.41 a barrel in London late afternoon trade.The market sold off in afternoon deals after the US governments Department of Energy revealed that American crude oil inventories increased by 4.7 million barrels in the week ending October 21.The weekly report indicated weakening demand in the United States, which is the worlds biggest oil-consuming nation.Expectations had been for a much smaller increase of just 400,000 barrels, according to analysts polled by Dow Jones Newswires.Investors also remain focused on Brussels, where European leaders have begun their second summit in three days on the long-running crisis that has dogged global financial markets for months.Markets are demanding a watertight deal to dispel fears the crisis could threaten the euro project and spark another fierce worldwide recession -- which would slash demand for key commodities like crude oil.