* Commodities broadly retreat, equities slip
* China stocks fall on rate increase talk
* IEA trims 2011 oil demand growth estimate, raises 2010
(Adds details, graphic)
By Alex Lawler
LONDON, Nov 12 (Reuters) - Oil fell more than 2 percent to
below $86 a barrel on Friday, retreating from a 25-month high
reached in the previous session, as concern about Irish debt
spurred a broad retreat from riskier assets.
Attention in the oil market refocused on risk aversion and
macroeconomic concerns at the end of a week when prices were
sent higher by oil's fundamentals -- Chinese demand at a record
and U.S. inventories plunging.
U.S. crude <CLc1> was down $1.93 a barrel at $85.88 as of
0837 GMT, after touching an intra-day peak of $88.63 on
Thursday, the highest since October 2008. ICE Brent <LCOc1> slid
$1.57 to $87.24.
"It's just a correction after the big rebound the euro had
against the U.S. dollar," said Ken Hasegawa, a commodity
derivatives manager at Japan's Newedge brokerage.
"The big issue is the worries about Ireland's economy. It
seems to be worse than expected, and that is the reason why the
euro is falling. In addition, technically some selling orders
have been triggered across all commodities."
The euro fell broadly on Friday, hitting a two-month low
versus the Japanese yen and a six-week low versus the dollar on
worries over Ireland's public finances and as positions in
riskier assets were pared back.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a timeline on the eurozone crisis
http://link.reuters.com/kar27p
Euro zone struggles with debt graphic
http://r.reuters.com/hyb65p
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
European equities lost ground in early trade, gold fell and
copper declined. Asian stocks were broadly lower, led by a 5
percent drop in the Shanghai composite index <> on talk of
interest rate increases.
The International Energy Agency, an adviser to 28
industrialised countries, on Friday predicted a slowdown in the
rate of growth in global oil demand next year, while raising its
forecast for 2010. []
Concerns about Ireland overshadowed a Group of 20 leaders'
summit in Seoul, where a breakthrough on resolving global
economic imbalances amid incongruent policies looked
unattainable. []
Oil had rallied for most of the past two weeks, partly on a
plan by the U.S. Federal Reserve to buy $600 billion in Treasury
bonds to help speed economic growth.
(Reporting by Alex Lawler and Alejandro Barbajosa; Editing
by William Hardy)
