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Oil prices head for 2nd weekly drop

Friday, October 26 10:49:51

Oil fell today to around $108 a barrel and was heading for its second weekly drop, pressured by expectations U.S. economic growth will not be strong enough to bolster the demand outlook and by Europe's debt crisis.

The world's biggest economy is likely to have grown at an annual rate of 1.9 percent in the third quarter, a Reuters poll showed, still short of the pace economists say is needed to make much of a dent in the unemployment rate.

Brent crude fell 58 cents to $107.91 a barrel by 0938 GMT, having fallen to as low as $107.40 earlier. It rose on Thursday after seven declines that marked its longest losing streak since July 2010. U.S. oil slipped 72 cents to $85.33.

Oil has been dragged lower this week by rising U.S. inventories, poor earnings and Europe's financial crisis. Results from Apple and Amazon undershot expectations, while on the oil patch Norway's Statoil cut its 2013 output guidance.

"Commodities have come under renewed pressure," said Carsten Fritsch, analyst at Commerzbank in Frankfurt. "The financial markets are clearly the dominant force at the moment rather than supply-side risks, of which there are still many." (C ) Reuters