``We are starting to see a lot of signs that the economy is going to be challenged,'' said Phil Flynn, a commodities trader for Chicago-based Alaron Trading. For oil, ``that means that the demand growth that we have taken for granted may be coming to an end.''
Sales dropped 0.4 percent, the first decline since June, following a revised 1 percent gain in November, the Commerce Department said today. December's fall capped the weakest year since 2002. Saudi Oil Minister Ali al-Naimi said the Organization of Petroleum Exporting Countries will raise supply if justified.
Crude oil for February delivery fell $2.42, or 2.6 percent, to $91.78 a barrel at 9:39 a.m. on the New York Mercantile Exchange, the lowest since Dec. 21. It rose $1.51, or 1.6 percent, to $94.20 yesterday, the first gain in four days.
Brent crude for February settlement, due to expire tomorrow, was at $91.15 a barrel, down $1.77, on London's ICE Futures Europe exchange.
