Oil declined for a second day in New York, extending its biggest drop in two months, on concern that a U.S. economic slowdown may curb demand in the world's largest consumer of crude, Bloomberg reported. It said futures fell as much as 1.3%, deepening yesterday's 2.4% loss. Crude tumbled almost US$4 in three minutes yesterday before the expiry of October options contracts. The Federal Reserve Bank of New York's general economic index, known as the Empire State Index, fell to a three-year low. Saudi Arabia is taking action to reduce oil prices, a Persian Gulf official with knowledge of the matter said today. Oil for October delivery fell as much as $1.23 to $95.39 a barrel in electronic trading on the New York Mercantile Exchange and was at $95.90 at 1.45 p.m. London time. The contract slid $2.38 yesterday to $96.62, the lowest close since Sept. 10 and its biggest decline since July 20. Prices are 3% lower this year. Brent crude for November settlement fell 30 cents to $113.49 on the London-based ICE Futures Europe exchange. It dropped 2.5% yesterday. The front-month European benchmark grade's premium to the corresponding West Texas Intermediate rose to $17.24 a barrel from $16.84 yesterday. Brent will trade in the range of $100 to $120 a barrel, David Fransen, the chief executive officer of Vitol SA's Geneva- based unit, said in a presentation to the British-Swiss Chamber of Commerce in Geneva. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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