Oil extends slide on economic worries

By Maryelle Demongeot

LONDON (Reuters) - Oil prices extended a week-long slide on Thursday, briefly tumbling below $100 a barrel for the first time in two weeks amid growing concerns an economic slowdown in top consumer the United States would cut global energy demand.

U.S. crude settled down 70 cents to $101.84 a barrel after falling as low as $98.65 earlier in the session, the first time below $100 since March 5. London Brent fell 34 cents to $100.38 a barrel.

U.S. oil prices have been in steady retreat since hitting a record $111.80 a barrel on Monday as signs of an economic slowdown mount, raising the possibility of a sharp slowdown in world demand for commodities.

Some banks may have also tightened credit and increased margin calls, forcing selling, some analysts said.

"We continue to see profit-taking among commodities. There are also macro-economic concerns about the economy and the dollar has been doing better," said Mike Wittner, global head of oil market research in London for Societe Generale.

Gold dropped more than 4 percent to a one-month low earlier, while platinum slid more than 5 percent to $1,820 an ounce, the lowest level since early February, as funds cashed in.

Oil and other commodities have struck a series of record highs since the beginning of the year as investors fled stock markets and took refuge in dollar-denominated assets.

But investors nervous about the economy are cashing in on recent record prices in commodities and energy.

"Commodity players seem to be coming round to the notion that the deterioration in the U.S. macro picture cannot be ignored," Edward Meir said in a daily note by MF Global.

Weekly U.S. stocks data released on Wednesday showed lower fuel stocks than forecast, but the figures also revealed a fall in demand.

U.S. demand for gasoline over the past four weeks was 0.1 percent below last year, while distillate demand was running more than 5 percent below last year, the U.S. Energy Information Administration figures showed.

Adding to the gloom, U.S. government data showed on Thursday that the number of jobless staying on aid rolls rose to the highest in three and a half years to 378,000, higher than the expected 360,000, possibly partly due to an auto industry strike.

"We believe that the combination of low economic growth in the United States and high oil price inflation will have its strongest impact on demand in the first half of the year," Goldman Sachs said in a note.

(Additional reporting by Luke Pachymuthu in Singapore; editing by Matthew Lewis)