NEW YORK, Oct 28 (AFP) - New York's main oil contract skidded Thursday, completing a 7.7-percent plunge in two days, as supply fears eased and China raised interest rates to cool the energy-hungry economy.
The benchmark New York contract, light sweet crude for delivery in December, tumbled 1.54 dollars, or 2.9 percent, to finish at 50.92 dollars a barrel.
It has shed 4.25 dollars, or 7.7 percent, in two days since a government survey showed US commercial crude oil inventories surging at an unexpectedly rapid pace.
Brent North Sea crude for December slid 1.08 dollars, or 2.4 percent, to 48.37 dollars. The Brent contract has plummeted 3.29 dollars, or 6.4 percent, in two days.
On Thursday, the world oil price descent steepened on news that China, a voracious oil consumer, had raised interest rates for the first time in a decade to brake activity.
"The basis of (the recent oil price rise) has been growth in demand in China in particular," said Fimat USA analyst John Kilduff.
"Any signal that demand might be crimped pulls the rug out from under the market," he said.
10/28/2004 19:48 GMT - AFP