Crude Oil Falls, Paring Rally, on Concerns Fuel Demand Is Weak

By Christian Schmollinger

Nov. 25 (Bloomberg) -- Crude oil fell in New York, paring yesterday’s 9 percent gain, on concerns that the rally is unsustainable in the face of falling fuel demand.

Crude oil for January delivery fell as much as 55 cents, or 1 percent, to $53.95 a barrel on the New York Mercantile Exchange. It was at $53.98 a barrel at 8:57 a.m. Singapore time. Futures have dropped 63 percent since reaching a record $147.27 on July 11. Yesterday, the contract increased $4.57, or 9.2 percent, to settle at $54.50 a barrel, the biggest one-day gain since Nov. 4.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net.