Oil Prices Falling Again on Economic Concerns

New York, NY, Aug. 27, 2009--Oil prices fell to near $71 a barrel on Thursday, dragged down by signs of faltering U.S. crude demand and concerns the global economic recovery will be anemic.

Benchmark crude for October delivery was down 31 cents to $71.12 a barrel by midday in Europe in electronic trading on the New York Mercantile Exchange. On Wednesday it fell 62 cents to settle at $71.43.

Oil briefly hit the $75 a barrel level Tuesday but failed to break higher and has been sliding since then.

The Energy Department reported Wednesday that U.S. crude stockpiles rose by 200,000 barrels for the week ended Aug. 21. The same report a week ago showed a large and unexpected draw on oil, which sent prices soaring.