Reuters reported that Brent futures fell below USD 115 per barrel in Asia on signs of economic weakness across the globe while doubts about more easing by the Federal Reserve and renewed worries over Europe's debt crisis also weighed.

Crude prices may still find support from a supply crunch because of sanctions on Iran and maintenance-linked production cuts in the North Sea as well as a seasonal pick-up in demand in the Q4. Investors are also closely monitoring two tropical storms in the Atlantic which potentially threaten US energy interests in the Gulf of Mexico.

Brent October futures LCOc1 had fallen 43 cents to USD 114.58 by 0302 GMT. They ended nearly flat on Thursday after swinging in a two dollar range.

NYMEX front-month crude futures CLc1 eased 48 cents to USD 95.79 per barrel after shedding nearly a dollar in the previous session. It is close to the support level of USD 95.61, a break below which would pull it down to USD 93.95.

Mr Tony Nunan risk manager at Mitsubishi Corp in Tokyo said that "It's no secret that the global economy is in a bad shape. Europe's a mess, US is struggling and China which was seen as a growth engine is also sputtering all of which points to weak demand for crude."

Source - Reuters

(www.steelguru.com)