SINGAPORE: Oil prices turned lower in Asia on Thursday as a rally spurred by bargain-hunters lost steam amid persistent fears over the faltering state of the global economy, analysts said.
New York's main contract, light sweet crude for delivery in September, fell 32 cents to $91.61 per barrel in the afternoon.
Brent North Sea crude for September delivery slipped five cents to $113.18.
"US crude fell... as investors worried that the global economy would slow, affecting crude oil demand," said Phillip Futures in a report.
The report pointed to a "slightly more than expected" 950,000-barrel rise in US oil stockpiles despite a fall in imports as a barometer of sliding crude demand in the world's largest oil consuming nation.
Ernst and Young's head of Asia-Pacific oil and gas practice Sanjeev Gupta said crude markets were also being depressed by pessimism over the US economic recovery despite this week's deal to raise the debt ceiling.
The agreement, which was signed into law Tuesday after bitter political wrangling, ensured Washington avoided a devastating default.
However, traders held "scant confidence that the compromise... will alleviate any of the economic anxiety in the US," Gupta stated.
"Other economic data released... painted an increasingly pessimistic picture," he added.
Weak US jobs creation and service sector growth numbers released Tuesday were the latest statistics that aggravated fears of a slowdown in the world's biggest economy.
The Institute for Supply Management's index released Wednesday showed the giant US service sector growing at a snail's pace in July, with non-manufacturing activity dropping to 52.7 last month. A reading of 50 indicates no growth.
US private sector hiring also slowed in July, with payrolls firm ADP reporting a net 114,000 jobs created by private, non-farm businesses last month compared with 145,000 in June.
