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Crude futures fell more than $1 on Tuesday after an overnight rate increase in India and a surprise contraction in the UK economy fanned concerns about the pace of the global recovery, and ahead of an expected build-up in U.S. inventories due later. By 1257 GMT, U.S. crude benchmark West Texas Intermediate (WTI) was down $1.23 at $86.64 a barrel. Brent future prices were down $1.19 to $95.42 a barrel. India's overnight interest rate increase was accompanied by a central bank warning that stronger inflation risks remained, renewing concerns that oil-hungry emerging economies could temper their demand growth. "Everything is down today, not just crude," Commerzbank's Carsten Fritsch said, as copper fell more than two percent and gold fell to its lowest in ten weeks. "We saw a similar price move already last week when there was concern about further tightening in China, but it proved to be short-lived." A surprise contraction in fourth-quarter UK GDP also

Oil hovered around its highest levels in more than two years on Friday, supported by cold weather across the globe, appetite for risk assets and signals from OPEC it would not arrest the rally. European benchmark ICE Brent crude for February closed 48 cents down at $93.46 on Friday after hitting $94.74 a barrel, its highest level since October 2008. Global benchmark U.S. crude futures, which hit a 26-month high of $91.63 on Thursday, did not trade on Friday with the NYMEX floor closed for the Christmas holiday. Brent, trading at a premium to U.S. crude, has surged partly due to a severe cold snap in continental Europe and Britain. Heavy snow stranded thousands of Christmas travellers in Europe on Friday, threatening to prolong chaos at airlines and rail networks and further boost fuel demand. Analysts said oil could continue its rally on strong global demand and falling inventories in 2011, which promises to be a strong year for risk assets as confidence about the global econ

Oil prices wallowed below $75 a barrel Friday in Asia as a spate of weak figures on the U.S. economy added to expectations that demand for crude will weaken. Benchmark crude for October delivery edged up 2 cents to $74.45 a barrel at midday Kuala Lumpur time in electronic trading on the New York Mercantile Exchange. The contract fell 99 cents to settle at $74.43 on Thursday. Crude prices have retreated nearly 8 percent in the past two weeks amid evidence of slowing economic growth. Prices rebounded Tuesday but the rally was short-lived after a U.S. report showed crude inventories fell less than expected last week as demand remained sluggish. Adding to the gloom, the U.S. Labor Department said Thursday that jobless benefit claims rose last week while the Federal Reserve of Philadelphia said manufacturing activity in the mid-Atlantic region dropped during August. Fewer jobs mean fewer people filling their tanks to drive to work. Also, fewer vacationers will be on the road after Labor Day