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WORLD oil prices were lower in Asian trade on Wednesday on renewed worries about energy demand in the face of weak global growth, analysts said.
New York's main contract, light sweet crude for December delivery dropped US$1.13 (S$1.66) to US$69.40 a barrel from US$70.53 at the close of floor trading in the United States on Tuesday.
Brent North Sea crude for December delivery eased US$1.19 to US$65.25.
The drop in oil prices came ahead of the release later on Wednesday of key US energy data, a gauge of oil consumption in the world's biggest economy.
A Platts survey of analysts is expecting crude oil stocks to rise by 500,000 barrels last week and distillates reserves, including heating oil, to increase 1.4 million barrels.
'Worries over the international economic outlook have not disappeared,' said Mr David Moore, a Sydney-based commodity strategist with the Commonwealth Bank of Australia.
Oil prices have eased sharply since reaching a record high of above US$147 dollars in July.
Analysts fear energy demand will drop off if the global economy continues to weaken.
Meanwhile, local reports Tuesday said Algeria has slashed oil production by 71,000 barrels per day (bpd) to honor Opec's decision to reduce global daily output by 1.5 million bpd.
'The energy ministry told Sonatrach (the state-owned energy company) to cut gross national production by 71,000 barrels per day (bpd) beginning November 1,' a government source told the APS news agency.
Algeria produced as many as 1.45 million bpd before the energy ministry implemented the cuts.
The Organisation of the Petroleum Exporting Countries (Opec) announced last month it would cut output starting November to halt the slide in oil prices.
Opec pumps about 40 per cent of the world's oil. -- AFP
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