(Updates prices, adds comment)
By Maryelle Demongeot
LONDON, March 20 (Reuters) - Oil pared some losses after
falling below $100 on Thursday for the first time in two weeks
on growing concerns an economic slowdown in top consumer the
United States would undermine global energy demand.
U.S. crude <CLc1> was down $1.30 to $101.24 a barrel by
1532 GMT, but well up from an earlier low of $98.65, the first
time since March 5 that it has fallen below $100.
Prices lost almost $5 on Wednesday on economic concerns.
London Brent crude <LCOc1> was down 80 to $99.92, after
briefly rising to positive territory.
Commodities earlier tumbled as investors retreated into
cash, taking profits after a series of record peaks this year.
Some banks may have also tightened credit and increased
margin calls, forcing some selling, some analysts said.
"We continue to see profit-taking among commodities. There
are also macro-economic concerns about the economy and the
dollar has been doing better," said Mike Wittner, global head of
oil market research in London for Societe Generale.
Gold <XAU=> dropped more than 4 percent to a one-month low
earlier, while platinum slid more than 5 percent to $1,820 an
ounce, the lowest since early February as funds cashed in.
Oil and other commodities have struck a series of record
highs since the beginning of the year as investors fled stocks
markets and took refuge in dollar-denominated assets.
U.S. oil prices averaged around $97 a barrel since the
beginning of this year, up from $72.30 in 2007.
But investors nervous about the economy are cashing in on
recent record prices in commodities and energy [].
"Commodity players seem to be coming round to the notion
that the deterioration in the U.S. macro picture cannot be
ignored," Edward Meir said in a daily note by MF Global.
Weekly U.S. stocks data released on Wednesday showed lower
fuel stocks than forecast, but the figures also revealed a fall
in demand.
U.S. demand for gasoline over the past four weeks was 0.1
percent below last year, the U.S. Energy Information
Administration figures showed.
Adding to the gloom, U.S. government data showed on Thursday
that the number of jobless staying on aid rolls rose to the
highest in three and a half years to 378,000, higher than the
expected 360,000, possibly partly due to an auto industry
strike. []
"We believe that the combination of low economic growth in
the United States and high oil price inflation will have its
strongest impact on demand in the first half of the year,"
Goldman Sachs said in a note.
Goldman pointed to the 3.2 percent fall in U.S. oil demand
over the past 4 weeks from last year according to stocks data
released on Wednesday.
(Additional reporting by Luke Pachymuthu in Singapore; editing
by James Jukwey)
