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Originally published Sunday, October 7, 2012 at 10:06 PM

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Oil falls in Asia as world growth outlook dims

Multiple signs that the global economy is struggling to escape its mire kept oil prices on their down trend Monday.

AP Business Writer

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BANGKOK —

Multiple signs that the global economy is struggling to escape its mire kept oil prices on their down trend Monday.

Benchmark crude for November delivery tumbled $1.51, or 1.7 percent, to $88.37 per barrel by late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.

Oil fell more than 2 percent Friday as traders fret that jobs aren't growing fast enough in the U.S. to significantly boost demand for fuel. The contract closed down $1.83 to $89.88 per barrel.

The economy created 114,000 jobs in September, in line with what economists had expected but not an indication of strong jobs growth. The U.S. Labor Department said the unemployment rate fell to 7.8 percent, the first time it's been below 8 percent in nearly four years.

In a new sign of a weak global economy, the World Bank cut the growth outlook for developing Asia-Pacific economies for 2012 to 7.2 percent from its May forecast of 7.6 percent. The bank cited weak global demand due to the lackluster U.S. recovery and Europe's recession.

The bank also cut its forecast for China, the region's biggest economy, to 7.7 percent from May's 8.2 percent.

Oil jumped 4 percent on Thursday following a 4 percent decline on Wednesday. Traders have been trying to gauge the strength of global oil demand while also watching developments surrounding Syria for any signs of a disruption in supplies from the Middle East.

In London, Brent crude, which is used to price international varieties of oil, fell $1.19 to $110.83 a barrel.

Among other energy futures traded in New York:

- Natural gas fell marginally to $3.395 per 1,000 cubic feet.

- Heating oil fell 2.9 cents to $3.127 per gallon.

- Wholesale gasoline fell 2 cents to $2.933 per gallon.

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