By Rachel Graham Dec. 14 (Bloomberg) -- Crude oil fell for a ninth day, poised for the longest decline since July 2001, on speculation the global economy’s uneven recovery from recession may slow growth in demand for fuel and energy. Prices declined after the Tankan business confidence index in Japan, the world’s third-largest oil consumer, posted its smallest improvement this year. Crude has dropped 16 percent since reaching a year-to-date high on Oct. 21. Goldman Sachs Group Inc. said in a report today that prices have fallen because of “slow recovery” in demand in developed markets. “In the absence of other factors, people are reflecting on global demand which is perceived to be weaker,” said Paul Harris, head of natural resources risk management at the Bank of Ireland in Dublin. “There’s probably a bit more on the downside to go.” Crude oil for January delivery dropped as much as $1.28, or 1.8 percent, to $68.59 a barrel in electronic trading on the New York Mercantile Exchange. It was at $69.23 at 12:24 p.m. in London. Oil recovered some of its losses after Abu Dhabi pledged $10 billion in aid to the Dubai government, spurring investors to buy higher-yielding assets. Futures fell 1 percent to $69.87 a barrel on Dec. 11, the lowest settlement since Oct. 7. Prices dropped 7.4 percent last week, the biggest decline since September, as U.S. fuel stockpiles rose and the dollar climbed to a two-month high against the euro, reducing the investment appeal of commodities. “The path lower is still there,” said Roland Stenzel, a crude and carbon trader at E&T Energie Handelsgesellschaft mbH, said from Vienna. “We’ve seen a downward trend since Dec. 4.” Brent Crude Brent crude oil for January settlement was at $71.98 a barrel, up 10 cents, at 12:25 p.m. local time on the London- based ICE Futures Europe exchange. Hedge-fund managers and other large speculators reduced their bets on rising oil prices to a two-month low last week, according to U.S. Commodity Futures Trading Commission data. Speculative net-long positions, the difference between orders to buy and sell the commodity, fell 11 percent to 67,817 contracts in the week ended Dec. 8, the commission said in its weekly report. “Money managers are moving out of crude,” Frank Schallenberger, head of commodities research at Landesbank Baden-Wuerttemberg, said on the CFTC data. “From a technical viewpoint things are looking negative.” To contact the reporter on this story: Rachel Graham in London rgraham13@bloomberg.net

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