Crude prices drop on economic worries

Crude oil prices were down Thursday after new Commerce Department numbers showed that the US economy grew more slowly than expected in the second quarter, with the gross domestic product going up just 1.9 percent instead of the 2.4 percent growth that had been anticipated.

The slowing growth raised fears that demand for oil and oil products will continue to decline.

Also causing demand worries was new Labor Department data showing that new jobless claims last week were at a 5-year high, with 448,000 first-time filings.

West Texas Intermediate crude for September delivery was $3.63 lower to $123.14 per barrel just minutes before the close of floor trade on the New York Mercantile Exchange, while at last report Brent crude had dropped $2.97 to $123.33 on the ICE Futures Europe exchange in London.

In afternoon trade, Nymex September gasoline futures were down 8 cents to $3.06 per gallon while September heating oil had also dropped 5 cents to $3.47 per gallon.

After the US Energy Information Administration said that natural gas inventories were up last week, Nymex September natural gas was 13 cents lower to $9.12 per million British thermal units even though stockpiles remain below the five-year average for this time of year.