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Oil dips below $122 in Asia on waning demand in US
(Agencies)
Updated: 2008-07-30 17:25

SINGAPORE -- Oil prices continued a 3-week slide Wednesday in Asia as expectations that this year's surge in energy costs are undermining US gasoline demand sent crude below $122 a barrel.

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Investors expect more evidence of falling gasoline consumption when the US Energy Department's Energy Information Administration releases its weekly oil inventory report later Wednesday, said Mark Pervan, a senior commodities strategist with ANZ Bank in Melbourne.

"People are looking closely at the deteriorating demand for petrol," Pervan said. "The market will probably fence-sit ... ahead of the DOE numbers."

Gasoline stocks were expected to rise 400,000 barrels in the petroleum supply report, according to the average of analysts' estimates in a survey by energy research firm Platts. The survey also showed that analysts projected crude oil inventories to fall 1.3 million barrels.

Light, sweet crude for September delivery rose 3 cents to $122.22 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract dropped $2.54 to settle at $122.19 a barrel on Tuesday.

In London, September Brent crude was up 4 cents at $122.75 a barrel on the ICE Futures exchange.

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