Oil prices slip on demand fears

LONDON (AFP) - Oil prices fell on Tuesday as weak German data stoked concerns about slowing global economic growth and lower demand for energy, analysts said.

Crude also slipped on the strengthening US currency, which makes dollar-priced crude more expensive for foreign buyers and tends to dampen demand. New York’s main contract, light sweet crude for delivery in October, fell 67 cents to 114.44 dollars a barrel.

London’s Brent North Sea crude for October slid 64 cents to 113.39. Germany’s economy contracted by 0.5 percent in the second quarter of 2008, compared with the previous three-month period, official data confirmed Tuesday.

“Crude futures were lower ... as poor German data highlighted the frailties of the European economy and once again sparked fears that a global slowdown would result in reduced demand for oil,” said Sucden analyst Nimit Khamar.