Singapore / Grant Smith: Crude oil fell for a second day on Wednesday on speculation petrol demand in Asia and the US may slow after near-record prices reduced consumption. Petrol use has slipped for 14 straight weeks, MasterCard Inc. reported on Tuesday.
“The key consideration in the market this week has been demand destruction,” said Christopher Bellew, senior broker at Bache Commodities Ltd in London.
Crude oil for September delivery fell as much as 79 cents, or 0.7%, to $121.40 a barrel on the New York Mercantile Exchange. On Tuesday, it fell $2.54, or 2%, to $122.19 a barrel, the lowest close since 6 May. Prices have dropped more than $25 a barrel, or 17%, from their 11 July record.
India, Vietnam and Malaysia have raised prices of diesel and petrol in the past two months to cut government expenditure.