(Updates with Brent settlement)
By Alex Lawler
LONDON, Jan 15 (Reuters) - Oil prices fell more than $2 on
Tuesday after data showed a decline in U.S. retail sales,
adding to concern that the world's top fuel consumer is heading
into a recession.
Sales at U.S. retailers fell 0.4 percent in December,
according to a government report that implied costlier energy
and slumping housing prices were taking a toll on consumers.
[]
"All signs point to a recession, which could be a precursor
to demand destruction," said Nauman Barakat, an oil trader and
senior vice president at Macquarie Futures USA.
U.S. crude <CLc1> settled $2.30 lower at $91.90 a barrel.
London Brent <LCOc1> fell $1.94 to $90.98.
U.S. oil prices are down more than 8 percent from their
all-time peak of $100.09, which was hit this month as concern
of a U.S. economic slowdown outweighed tightening stockpile
levels in major consumer nations.
Former U.S. Federal Reserve Chairman Alan Greenspan said
the United States, battered by a housing slowdown and credit
crunch, was probably in recession or nearing it.
[]
Oil also eased as Saudi Arabia's oil minister, Ali
al-Naimi, said the world's top exporter would raise output when
the market needed more crude, responding to a U.S. call for
more supply. []
U.S. President George W. Bush, who is on a tour of the
Middle East, said earlier on Tuesday an increase in output by
the Organization of the Petroleum Exporting Countries would
help ease the pain of high energy prices.
"OPEC should understand that, if they can put more supply
on the market, it will be helpful," Bush told reporters.
Saudi Arabia is the de facto leader of OPEC. The producer
group, which pumps more than a third of the world's oil, has
said repeatedly it is supplying enough to meet demand.
The U.S. president joined other leaders who this week have
addressed the topic of record oil prices.
French President Nicolas Sarkozy told Saudi Arabia's King
Abdullah that the kingdom should use its influence to moderate
prices, which the French president said should realistically be
around $70. []
Venezuelan President Hugo Chavez said on Monday he hoped
oil would not go above $100. The OPEC member is normally a
price hawk and typically resists OPEC agreements to increase
output.
Supply disruptions in countries such as Nigeria and
political tension in the Middle East limited the decline, while
the slumping U.S. dollar supported oil and other commodities,
such as gold.
Royal Dutch Shell declared force majeure on crude oil
shipments from its Forcados export terminal in Nigeria
following sabotage to two pipelines last week.
The latest snapshot of U.S. crude oil inventories, due on
Wednesday, will help set direction for the market.
Stockpiles were expected by analysts to rise by 600,000
barrels in the week to Friday. An increase would be the first
in nine weeks. []
(Additional reporting by Richard Valdmanis in New York;
Maryelle Demongeot in Singapore and Peg Mackey in London;
Editing by Walter Bagley)
