NEW YORK-Worries that China's economy is overheating and a surprise increase in US oil inventories pushed oil futures below $89 a barrel yesterday. Light, sweet crude for February delivery settled down US$2, or 2.2 per cent, at US$88.86 a barrel on the New York Mercantile Exchange. With expiration of the February contract Thursday, the more heavily traded March contract settled down US$2.22, or 2.4 per cent, at US$89.59 a barrel.
Brent crude on the ICE futures exchange recently fell US$1.60, or 1.6per cent, at US$96.56 a barrel.
Oil futures headed lower after data released late Wednesday cast doubt about the country's ability to rein in economic growth. The country's economy grew 9.8 per cent during the last three months of 2010, according to government figures, beating economists' forecasts. But inflation remained high, stoking worries that numerous rounds of monetary tightening have been ineffective at controlling prices. (Dow Jones)