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Oil Falls to Three-Month Low as Earnings Bolster Concern

Published: October 24, 2012 | 10:01 am
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Oil pared gains in New York after a drop in manufacturing data from Germany, Europe’s largest economy, signalled the region’s debt woes may be far from over.

U.S. crude was 0.2 percent higher after falling as much as 0.5 percent when Markit Economics reported that the German purchasing managers’ index for manufacturing showed 45.7 for October, down from 47.4 in September. Business confidence in Germany slumped to a 32-month low. Futures rose as much as 0.9 percent earlier in the day.

“The weak PMI from Germany is a clear sign that the euro- zone is struggling to reignite growth,” Thina Saltvedt, an analyst at Nordea Bank AB in Oslo, said by telephone. “The figure was much weaker than expected and weighs on the risk sentiment and oil prices.”

Crude for December delivery fell as much as 41 cents before recovering and was 15 cents higher at $86.82 a barrel in electronic trading on the New York Mercantile Exchange at 9:51 a.m. London time. The contract closed yesterday at $86.67, the lowest settlement since July 12. Prices are down 12 percent this year.

Brent for December settlement was up 65 cents at $108.90 a barrel on the London-based ICE Futures Europe exchange, after rising as much as 1 percent to $109.34.

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