China rate hike speculation involved in the NYMEX crude oil futures ended sharply lower

Rumors that China may raise interest rates so that crude oil and other commodities tumbled

* IEA cut 2011 global oil demand growth forecast, to suppress the oil market

* Market focus: to be published next week U.S. retail sales and business inventories data

Reuters, New York, November 12 - --- U.S. crude oil prices fell on Friday on more than 3%, due to market speculation that China may raise interest rates, triggered profit-taking, oil prices over the past two weeks, nearly 8%.

Euro debt concerns and the International Energy Agency (IEA) also cut demand forecast in 2011 the market under pressure.

Analysts said crude oil hit overbought technical condition, caused by downward adjustments.

Review inventory data released this week, analysts noted that despite the significant reduction in crude stocks last week, the supply still increased by 8% a year earlier.

New York Mercantile Exchange (NYMEX) 12 month crude contract fell $ 2.93, or 3.34%, at $ 84.88 a barrel, after trading between 84.52-87.85 U.S. dollars. Reuters preliminary data show that a large volume of transactions, more than 30 high daily average of about 11%.

December contract was recorded on October 19 the biggest one-day percentage drop since. Thursday, the contract had hit a 25-month high of $ 88.63. This week the contract fell $ 1.97, or 2.27%; previous week, was up $ 5.42, or 6.66 % to 2 best weekly performance since mid.

December heating oil contract fell 6.34 cents, or 2.6%, to $ 2.3632. This week, down 2.16 cents, or 0.91%, while the previous week rose.

December gasoline contract fell 2.58 cents, or 1.2%, to $ 2.2099. This week, rose 2.99 cents, or 1.37% increase was recorded for three consecutive weeks.

Intercontinental Exchange (ICE) -12 Brent crude fell $ 2.47, or 2.8%, to $ 86.34. This week, fell $ 1.77, or 2.01%, ending a two-week rise.

IEA in the latest monthly outlook, the 2010 oil demand growth forecast at 19 million barrels to 234 million barrels a day increase. At the same time, demand growth forecast in 2011 from the previous forecast down 2 million barrels to 119 million barrels.


Prince of Saudi Arabia said in Houston on Thursday, Saudi Arabia, the dollar will not be "plagued" by 70-80 dollars a barrel range still satisfied with oil prices.

Analysts said the Fed will look all the 6,000 billion U.S. dollars plan to purchase government bonds, despite the rapid changes in economic prospects and the unexpected. (End)

- Refuse To compile; revision Jun