Crude oil fell below $94 for the first time in more than two weeks after Goldman Sachs Group Inc. said Japan is at risk of recession, cutting energy consumption.
``Indications of a slowing economy are weighing on the energy market,'' said Michael Fitzpatrick, vice president for energy risk management at MF Global Ltd. in New York. ``Retail sales numbers show consumers might be feeling the pinch of high energy prices and shutting their wallets.''
Crude oil for February delivery fell $1.96, or 2.1 percent, to settle at $93.71 a barrel at 2:42 p.m. on the New York Mercantile Exchange. It was the lowest close since Dec. 21. Futures reached a record $100.09 a barrel on Jan. 3. Prices are up 74 percent from a year ago.
``A recession would cause demand for oil to retreat and impact prices,'' Chakib Khelil, president of the Organization of Petroleum Exporting Countries and Algerian oil minister, told Algerie Presse Service today. The credit crisis ``could spread to Europe and lead to a global recession.''
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