Oil prices fell to $77.36 a barrel in mid-day trading in Europe today as concern grows over demand for energy and the speed of recovery in key markets including the United States. Crude prices jumped yesterday, but recent indicators suggest economies are not recovering as quickly as previously believed.
“It should be noted that fundamentals remain weak, as current above-average temperatures raise concerns for oil demand levels in the U.S.,” Sucden Financial Research said in a report.
Demand from China, however, has grown in the last two months at its fastest pace in five years as analysts forecast 10 percent economic growth in the fourth quarter.
“The recent data mark a significant acceleration in Chinese demand,” Barclays Capital said in a report. It predicts oil will average $85 a barrel next year and $137 in 2015.
Trading is closed Thursday in the U.S. for the Thanksgiving holiday.
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