Oil hovers near $59 on global growth pessimism

Oil prices hovered near 20-month lows at $59 a barrel Wednesday in Asia as investors come to grips with the prospect that global growth next year will slow more than originally feared, cutting demand for crude products such as gasoline. Light, sweet crude for December delivery was down 31 cents to $59.02 a barrel, after falling as low as $58.55, in electronic trading on the New York Mercantile Exchange by midday in Singapore. The contract overnight fell $3.08 to settle at $59.33, the lowest closing price since March 2007. Oil prices have fallen about 60 percent in four months, plunging from a record $147.27 in mid-July. We have a pretty good idea that global growth is going to be pretty awful next year and probably not much better in 2010,'' said Mark Pervan, senior commodity strategist with ANZ Bank in Melbourne. There was clearly a bubble scenario in all commodities and that bubble has burst.'' Investors are pricing in slowing crude demand growth from China, whose economy, the world's fourth largest, was once thought to be a counterweight to weakening demand from the U.S. and Europe. 

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