Oil prices continue to fall on demand concerns

WASHINGTON (dpa-AFX) – Oil prices extended their steep overnight losses on Wednesday and are now hovering near a nine-month low amid renewed concerns about slowing growth in the US and China.

Benchmark Brent crude futures fell half a percent to $73.40 a barrel, after falling nearly 5 percent in the previous session on concerns about slower global demand growth and the possibility of increased supply from key producers.

WTI crude futures fell 0.4 percent to $70.06, after falling 4.4 percent on Tuesday.

U.S. manufacturing activity contracted for the fifth straight month in August and the 21st time in the past 22 months, raising concerns that the world’s largest economy is headed for a recession.

A private survey elsewhere showed that growth in China’s services sector slowed in August despite a summer travel spike.

On the supply side, the political conflict that has halted Libyan exports is expected to be resolved.

Libya’s two rival legislatures agreed Tuesday to jointly appoint a central bank governor, a move they hope will resolve a dispute over control of the country’s oil revenues.

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