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Oil slips to near $93 as China inflation picks up

Published on NewsOK Modified: January 11, 2013 at 7:09 am •  Published: January 11, 2013

"Just a few months ago, Saudi Arabia was producing 10 million barrels of oil per day," said a report from Commerzbank in Frankfurt. "This sharp reduction in supply from the largest OPEC producer should help offset the increased oil supply in the U.S. and diminish the supply overhang. Coupled with brighter demand prospects, this points to further increases in the oil price."

Other analysts, however, said that the output cut was likely due to lower Saudi expectations of global demand for crude, making the move bearish for oil prices.

Brent crude, used to price international varieties of oil, was down $1.36 to $110.53 per barrel on the ICE Futures exchange in London.

In other energy futures trading on Nymex:

— Wholesale gasoline fell 4.22 cents to $2.7511 a gallon.

— Heating oil was down 2.92 cents to $3.0251 a gallon.

— Natural gas rose 6.1 cents to $3.254 per 1,000 cubic feet.


Pamela Sampson in Bangkok contributed to this report.