Crude oil futures fell in value after notching two-day highs amid indications that economic growth is slowing, which will reduce demand for the energy commodity, Bloomberg reports.
As the globe's top consumer of crude oil, the U.S. is seeing signs of growth slackening, which is causing oil stockpiles to accumulate. The metropolitan region of Philadelphia saw manufacturing's pace slow down in August. A Wednesday U.S. Energy Department report indicated supplies of crude oil increased by 4.23 million barrel for week ended August 12.
"With all this uncertainty in the markets, the debt crisis in Europe and a bad outlook for the U.S. economy, oil could see another leg to the downside next week," trader Gerrit Zambo of Bayerische Landesbank in Munich told Bloomberg. "Consumers see levels close to $100 as a buying opportunity."
At 7:12 a.m. on Thursday, crude oil futures slipped 0.91 percent, a $1.01 drop to $109.59 per barrel.
CNN reports August will see the manufacturing index of the Federal Reserve Bank of Philadelphia drop to 1.0 from 3.2 during July. For the week ended August 13, initial unemployment claims grew 5,000 to 400,000, according to Bloomberg.
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