Crude oil prices fell on Friday following comments by the U.S. Federal Reserve that swelling energy prices that continue to push up inflation is leading to a decrease in oil demand and negatively affecting growth. Light, sweet crude for September delivery dipped to US$74.08 a barrel in Asian electronic trading on the New York Mercantile Exchange, midmorning in Singapore.
High energy prices are already hurting the economy, "in terms of real activity and in terms of inflation." While oil prices have retreated from recent highs after data showed that U.S. petroleum inventories grew last week, worries about the Middle East crisis linger. The eruption of fighting between Israel and militants in Lebanon last week pushed crude futures to a record high of US$78.40 last Friday, on fears that the fighting would escalate into a regional war and disrupt supplies.
21-Jul-06 
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