Oil prices fall in Asia

Crude oil traded lower in Asia today as investors focused on waning global energy demand, but the conflict between Russia and Georgia threatens price volatility, dealers said.    

 New York's main contract, light sweet crude for September delivery, was down 54 cents to $113.91 per barrel, continuing a decline in US trade yesterday.     

Brent North Sea Crude tumbled 57 cents to $112.10 a barrel, after also declining in London trade yesterday.     

"The main concern is the economy and the steep fall in demand," said Tony Nunan, manager for energy risk at Mitsubishi Corp in Tokyo.     

"It seems that the weakness in the US economy has now spread to Europe and Asia and I think that's what the main concern is."     

Fears of a recession in the eurozone gained momentum yesterday after official data showed a sharp fall in French industrial production in June.     

Analysts said the figures signal the bloc's second-biggest economy might have contracted in the second quarter.     

Germany, the biggest economy in the 15-nation bloc, has had a series of disappointing indicators. It will publish second-quarter growth figures on Thursday.     

Oil imports to China, the world's second-biggest oil importer after the United States, fell 7.0 per cent in July, the steepest decline since December.     

Fears of negative gross domestic product (GDP) growth in Japan were also contributing to the downward pressure on prices, Nunan said.     

However, he cautioned investors against ignoring the fallout from the escalating conflict between Russia and Georgia.