Oil prices slide after hitting 55

Dealers said evidence was growing that rising fuel costs arebeginning to slow the economic growth that helped ignite this year8217;s price jump.

Last week8217;s dip on the US stock market and a slump in the value of copper suggested the impact of rising energy costs was now being felt across asset classes. 8216;8216;The action in the US stock market8230;and the pummelling base metals got, suggest that fears of a sharp, energy-induced slowdown are building,8217;8217; said Edward Meir of brokers Man Energy.

US Federal Reserve Chairman Alan Greenspan on Friday said increased oil prices already had made a 8216;8216;noteable8217;8217; impact on the US GDP.

8216;8216;So far, the rise in the value of imported oil8212;essentially a tax on US residents 8212;has amounted to about 3/4 per cent of GDP,8217;8217; said Greenspan.

8216;8216;Risk of more serious negative consequences would intensify if oil prices were to move materially higher,8217;8217; he said.

Oil8217;s latest step higher above 55 had lifted prices more than 11 since mid-September, gains that some dealers said were not sustainable.

8216;8216;If high prices do continue much longer they will certainly have a bite on GDP growth,8217;8217; said Daniel Hynes of ANZ Bank in Melbourne.