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Oil prices down as dollar advances

AFP - Wednesday, August 27

LONDON (AFP) - - Oil prices weakened on Tuesday as traders reacted to the strengthening US currency, which makes dollar-priced crude more expensive for foreign buyers and tends to dampen demand.

New York's main contract, light sweet crude for delivery in October, fell 1.73 dollars to 113.38 dollars a barrel in electronic deals.

London's Brent North Sea crude for October slid 1.58 dollars to 112.45.

In the foreign exchange market, the European single currency slumped to a six-month low of 1.4589 dollars -- which was last seen in February -- after the release of a downbeat business sentiment survey in Germany.

Crude oil prices have sunk from record highs above 147 dollars a barrel in early July after surging from 100 dollars at the start of the year.

Analysts say the struggling economy in the United States, the world's biggest energy consumer, has helped curb demand for oil. There are also fears of slowing demand in Europe and elsewhere.

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