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Oil Falls, US Crude Ends Below $40 On Nagging Glut Worry

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NEW YORK Aug 2 (Reuters) - Oil prices fell again on Tuesday, erasing early gains and dragging U.S. crude below $40 a barrel as persistent worries of a glut offset the boost from a weak dollar early in the session.

U.S. crude futures settled down more than 1 percent after initially rising over 2 percent, traders said. A slide in U.S. equities also weighed.

"There is much talk about the product glut replacing the oil glut, and this is a worrisome indicator for crude demand," said Frank Klumpp, oil analyst at Stuttgart-based Landesbank Baden-Wuerttembe.

http://www.downstreamtoday.com/news/article.aspx?a_id=53020

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