Oil slips to a five-month low on demand concerns

US oil prices fell to a five-month low below $70 a barrel yesterday on concerns about Europe’s economy, the weak euro, swollen US oil inventories and fears that China’s growth may have peaked.

US oil futures hit a 19-month high at $87.15 on 3 May before mounting worries about Europe’s debt problems and high oil inventories pushed crude futures prices below $70 a barrel intraday yesterday, their weakest level since 14 December 2009.

By 5pm London time US crude for June delivery was down $1.66, or 2.32 per cent, at $69.95, having traded as low as $69.27, the weakest since prices fell to $68.59 on 14 December.

July Brent crude fell $3.08 to $74.85 a barrel.