Crude prices fall on recession fears

Crude oil prices declined Friday after recent gains as bad economic news for the US hinted that the recession is getting worse and so demand’s slight recovery recently might not continue for long as consumers continue to cut back on spending

New data showed that consumer spending in the US last quarter fell by 4.3 percent.

The Commerce Department reported that the fourth quarter of 2008 saw the gross domestic product contract by 6.2 percent on an annualized basis, much faster than had been forecast.

The price on April contracts for West Texas Intermediate crude dropped 74 cents to $44.48 per barrel around the close of floor trade on the New York Mercantile Exchange.

Nymex April gasoline futures were even at $1.39 per gallon in afternoon trade, while April heating oil dropped 3 cents to $1.26 per gallon but April natural gas added 16 cents to $4.24 per million British thermal units.

Retail gasoline prices in the US were also steady overnight, with the average pump price at $1.883 per gallon across the country, according to AAA.