August 08, 2007	Wednesday	Rajab 23, 1428

LONDON, Aug 7: World oil prices fell only slightly on Tuesday, a day after sliding by around $3.5 a barrel, as traders forecast weaker energy demand owing to economic troubles affecting the United States.

In London, the price of Brent North Sea crude for September delivery eased four cents to $71.13 per barrel.

New York’s main futures contract, light sweet crude for delivery in September, fell 26 cents to $71.80 per barrel.

The New York contract had soared to an historic high of $78.77 last Wednesday on news of sliding crude stockpiles in the United States, the world’s biggest consumer of energy.

But a weaker turn for the US housing sector has since rattled global financial markets and there are concerns that the slowdown could dampen economic growth and reduce demand for oil.

“Market participants are concerned about slowing demand in the top consumer, especially after a report showed weaker than expected jobs growth in the United States (last Friday), further dampening hopes for a soft landing for the country's economy,” Sucden analyst Michael Davies said.

“It seems that, contrary to many previous views, troubles in the sub-prime mortgage market are spilling over into other sectors, including commodities and energy, as investors become increasingly risk averse and pull funds out of the market to protect profits, or cover losses,” he added. —AFP