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Crude oil prices extend losses

Bottom may be near as U.S. Federal Reserve expected to offer good economic news.

By Daniel J. Graeber
Federal Reserve Board Chairwoman Janet Yellen may offer signs of strength in the U.S. economy, offering a potential life line to the weakened crude oil market. Photo by Kevin Dietsch/UPI
Federal Reserve Board Chairwoman Janet Yellen may offer signs of strength in the U.S. economy, offering a potential life line to the weakened crude oil market. Photo by Kevin Dietsch/UPI | License Photo

NEW YORK, July 29 (UPI) -- Chinese concerns about the durability of its economic momentum dragged further on crude oil prices, extending declines for a third straight day.

Brent crude oil prices were down about three-tenths of a percent in early trading to $53.10 per barrel. West Texas Intermediate, the U.S. benchmark, lost half a percent to $47.74 per barrel. Both indices are far below July 1 levels and close to their low points for 2015.

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Positive labor numbers from the United States and modest signs of recovery in the European economy helped with earlier gains in the crude oil market, though lingering concerns about Greek debt and emerging woes in the Chinese economy helped dampen some of the global economic expectations.

A crash on the Shanghai Composite this week, the second for July, helped push crude oil prices lower in early week sessions. Chinese Finance Minister Lou Jiwei said Wednesday the economy was stable, but still facing significant headwinds.

Chinese economic growth of 7 percent during the second quarter was better than expected, but still near levels posted during the latest financial crisis, he said.

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A weakening global economy is dragging on crude oil prices in an oversupplied market. Data from the American Petroleum Institute show U.S. crude oil inventories fell by 1.9 million barrels last week. Closely-watched data from the U.S. Energy Information Administration come out later in the trading day Wednesday.

Crude oil prices could rebound after the U.S. Federal Reserve meets late Wednesday. Early signs point to statements of emerging U.S. economic growth and continued gains in the job market.

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