Brent Crude Oil Falls Below $111 Per Barrel

Fears of another United States’ recession slowing fuel demand overshadowed concerns that a tropical storm may shut down some offshore oil production.

U.S. employment growth grounded to a halt in August just as it revived  recession fears and piling pressure on President Barack Obama and the Federal Reserve to provide more stimulus to aid the weak economy.

Brent futures for October fell 1.80 dollars to 110.53 dollars a barrel, and were trading around 111.10 dollars.

U.S. crude futures CLc1 were down by 1.85 dollars at $84.60 a barrel, after settling at 2.48 dollars on Friday at 86.45 dollars.

Volume was relatively light with U.S. markets closed for Labour Day.

”Oil is falling on weak demand, unemployment and talk of a double-dip recession,” said Eugene Weinberg, head of commodities research at Commerzbank in Frankfurt.

“Prices are still being supported by speculation that the Federal Reserve may launch a third round of quantitative easing (QE3).

“But I think the market may be too optimistic on that.

“The first two rounds of easing did little to support the economy, so why should a third round be of any more help.