Oil falls below $122 on growing demand concerns

edged down on Thursday, adding to the past two sessions' USD 5 losses, as India and Malaysia's decisions to raise fuel costs, together with weaker US consumption, heightened worries about falling oil demand.
US light crude for July delivery fell 38 cents to USD 121.92 a barrel, having settled down USD 2.01 on Wednesday at USD 122.30, its lowest settlement in almost a month.
London Brent crude fell 45 cents to USD 121.65.
"Weaker demand is the main concern now," said Tetsu Emori, fund manager at Astmax Co Ltd in Tokyo. "With domestic prices in these emerging countries now quite high, people will cut their consumption and that is a worry for the market."
India and Malaysia raised retail fuel prices on Wednesday, joining a growing number of Asian nations no longer able to afford big subsidies in the face of record-breaking oil prices.
India raised retail petrol and diesel fuel prices by about 10 percent and Malaysia hiked petrol prices by 41 percent.
Taiwan, Sri Lanka and Indonesia reviewed their subsidies last month.
US weekly data added to the bearish sentiment as larger-than-expected builds in products stocks, and falling gasoline demand, trumped a surprisingly big drawdown in crude oil stocks.
The US Energy Information Administration reported gasoline inventories rose 2.9 million barrels last week -- despite the start of the summer driving season -- while gasoline demand over the past four weeks slumped 1.4 percent versus last year.
Distillate stocks jumped by 2.3 million barrels, while crude stocks fell 4.8 million barrels.
"Gasoline demand is still a primary focus and the loss of 1.4 percent during the past four weeks on a year-over-year basis and the cumulative year-over-year decline of 1 percent since the beginning of this year attests to a major change in consumer driving habits," said Jim Ritterbusch, president of Ritterbusch & Associates of Galena, Illinois, in a post-market commentary.
Adding to the downward pressures, the US dollar was steady near three-month highs on Thursday, holding gains made in the previous day after Federal Reserve chief Ben Bernanke emphasised inflation concerns.
A stronger dollar tends to make dollar-denominated commodities less attractive to investors.

Katie Hlmes and Tom Cruise

Tom Cruise Moving to New York with Broadway-Bound Katie Holmes

HOLLYWOOD - Tom Cruise is moving to New York with his wife Katie Holmes while she stars in Broadway play All My Sons.
Last month, the actress confirmed she would be making her stage debut in the Arthur Miller play, following months of negotiations.
Producer Eric Falkenstein reveals the deal took so long to strike because Holmes wants to relocate her whole family, including Cruise and their 2-year-old daughter Suri, to the Big Apple when the show opens in October.
Falkenstein reveals, "It took time--about four months--to work out. There were family issues. She and Tom are committed to keeping the family together, so they have to get an apartment here."
He also insists Holmes wasn't hired because of her celebrity name: "Katie's not really a celebrity type. She's done brilliant work in films like Pieces of April and The Ice Storm and is perfect for the role.
"(Her character is) a natural sweetheart who can sniff out phonies; Katie basically has that exact moral fiber."
Cruise and Holmes recently purchased a $35 million mansion in Beverly Hills.

Mary-Kate Olsen Refuses to Discuss Heath Ledger

HOLLYWOOD - Actress Mry-KateOlsen is determined to stay out of the controversy surrounding Heath Ledger's death--by refusing to comment on her involvement in the incident.

The Weeds became linked to the actor's death after it was reported that the masseuse who discovered Ledger's dead body in his New York apartment in January had called Olsen in California a number of times before contacting emergency services.

The New York Police Department eventually decided not to question the 21-year-old, and as a result, Olsen has never explained the nature of her relationship with the Australian actor.

And in the July issue of Elle magazine, Olsen her reign of silence regarding the late star.

When asked about Ledger Olsen replied: "I'm not going to comment on that, I won't give you a word about that--in the nicest way possible. Let's move on."

Toxicology results released in February revealed Ledger 28, was killed by an accidental overdose of prescribed medications.