NEW YORK?World oil prices fell sharply for the third straight day Thursday amid market fears that demand will shrink against the backdrop of a possible global economic slowdown.
New York's main contract, light sweet crude for delivery in September, tumbled $2.28 to $75.74.
London's Brent North Sea crude for delivery in September dropped $2.12 to $75.52.
"The ghosts of a global economic slowdown are back and haunting the oil market again," Barclays Capital analyst Amrita Sen said in a note.
Despite revisions higher to global oil demand forecasts, fears of a slowdown in China and the United States "brought back remnants of the past," he said, referring to the financial crisis which peaked in 2008 and plunged the world into recession.
"Though the external circumstances are significantly different to that of 2008, fears of a global economic slowdown along with the sustainability of stimulus packages have meant that the battle between macroeconomic pessimism and oil demand data have now once again tilted in favor of the former, with the triumph of fundamentals over sentiment proving short-lived," Sen said.
Global markets were battered this week, triggered by a warning Tuesday by the US Federal Reserve that US recovery would be weaker than anticipated, forcing investors onto the defensive.
Slowing growth in China, the Asian powerhouse which has kept the global economy above water in the past 18 months, added to the damage.
The United States and China are the top energy consumers.
On Thursday, a surprise rise in the new US weekly jobless benefit claims added to increasing gloom over the economic outlook, with investors looking for safety as risks to growth mount.
Dealers said news that US jobless claims rose slightly, instead of falling as was expected, topped a dismal series of figures which have stoked fears that the economic recovery is in serious trouble.
"The energy market is back to the previous trading range of 70-80 dollars per barrel, as global uncertain conditions and fairly disappointing economic figures from the United States, eurozone and China weigh heavily on the market," said Sucden analyst Myrto Sokou.
