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NYMEX-Oil falls below $93/bbl, demand concerns linger

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Published: Sunday, 6 Jan 2013 | 8:18 PM ET

PERTH, Jan 7 (Reuters) - U.S. crude futures dipped below $93 a barrel in early Asian trading on Monday, as demand concerns continued to weigh on prices after an unexpectedly large build in oil inventories in the United States, the world's largest oil consumer.

FUNDAMENTALS

* U.S. crude for February delivery fell 12 cents to $92.97 a barrel by 0106 GMT.

* A Reuters technical analysis on Monday showed that while signals are mixed for U.S. oil, it is biased to revisit its Jan. 4 low of $91.52 per barrel.

* Brent crude for February rose slightly, gaining 9 cents to $111.40 a barrel.

* Data from the U.S. Energy Information Administration showed a steep build in stockpiles last week and demand continuing to lag year-ago levels by 2.3 percent.

* A U.S. jobs report last week showed gains in employment slowed slightly, but signaled some momentum in the labor market's recovery from the 2007-09 recession, with employment gains distributed broadly throughout the economy.

* Commodities were also affected by concerns that the U.S. Federal Reserve is considering a slowdown or stop of asset purchases that investors have figured into their economic outlook. The Fed's balance sheet of nearly $3 trillion risks instability with further expansion, the officials had reasoned.

MARKETS NEWS

* Asian shares outside Japan edged up on Monday, supported by data showing the U.S. economy continuing on a path of slow but steady recovery that had pushed Wall Street stocks to a five-year high.

* The U.S. dollar traded close to 2 1/2-year highs against the yen on Monday, while the euro began the week slightly weaker against its major counterparts as investors pondered the possible outcomes of more monetary stimulus this year from Japan and less from the U.S. Federal Reserve.

(Reporting by Rebekah Kebede; Editing by Richard Pullin)

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PERTH, Jan 7- U.S. crude futures dipped below $93 a barrel in early Asian trading on Monday, as demand concerns continued to weigh on prices after an unexpectedly large build in oil inventories in the United States, the world's largest oil consumer. *U.S. crude for February delivery fell 12 cents to $92.97 a barrel by 0106 GMT.

   
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