Oil prices fall with global energy demand sketchy

NEW YORK (AP)

Market watchers had hoped China would aggressively try to kickstart its economy, but in a speech Thursday Chinese Premier Wen Jiabao’s announced no new spending beyond the $586 billion package unveiled in November. The premier did say he expected his country to achieve a growth rate of 8 percent this year.

Initial optimism over China, and U.S. government reports that crude inventories were lower than expected, has “run out of steam,” Newedge analyst Antoine Halff said.

Oil prices shot up Wednesday when the government reported inventories tightened unexpectedly, but another round of disappointing economic news Thursday ate away some of that 9 percent rise.

“People are taking a second look and realizing the fundamentals are still weak. Demand is contracting,” Halff said.

Associated Press