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SINGAPORE (Reuters) – Brent vulgar dipped on weekday in continent trade after fivesome straightforward days of gains, slippy below $122 a containerful on anxiety that ascension prices module perceive obligation from the United States and China, the world's digit maximal lubricator consumers.

Unrest in the lubricator exporting location in North continent and the Middle East continues to support prices.

Brent vulgar lapse 52 cents to $121.78 a containerful at 0421 time after ascension to a 2-1/2-year high above $123 on Wednesday.

U.S. vulgar futures declined 45 cents to $108.38 a barrel, after impinging $109.15 on Wednesday, the maximal since September 2008.

High vulgar prices are pushing up retail fuel prices worldwide, adding to the inflationary pressure governments already face from the ascension cost of matter and nakedness materials.

"Current toll levels should hit a perverse impact on demand," said Tetsu Emori, a Tokyo-based commodities fund manager at Astmax Investments.

The stylish accumulation from the United States showed that fuel and distillate obligation has stalled patch China raised retail prices to newborn achievement highs to assist the burden of higher vulgar prices for land refiners

U.S. government accumulation on weekday showed fuel obligation at the world's crowning lubricator consumer lapse 1.2 proportionality from year-ago levels. Gasoline obligation should garner up as the dynamical season begins in the United States, but high prices would temper ontogeny in consumption.

"(U.S.) obligation module be challenged as higher retail prices and lowercase wage ontogeny advance to a ascension burden of fuel spending in U.S. households' budget and useable income," Harry Tchilinguirian, nous of commodity markets strategy at BNP Paribas, said in an long note.

Gasoline stocks lapse inferior than prognosticate patch a uprise in vulgar lubricator stocks were in distinction with expectations.

Tightening monetary contract in aggregation could also andante obligation for nakedness materials including lubricator there. The European Central Bank was expected to foretell a rate uprise later on Thursday.

CHINA RAISES PRICES

China, the world's ordinal maximal lubricator consumer, declared on weekday it module process retail fuel and diesel prices by up to 5.5 proportionality to secure refiners display sufficiency to foregather demand.

Analysts said the hike was too late and insufficient to counterbalance vulgar costs which hit risen around 20 proportionality since February. The disparity effectuation the margins of state-owned refiners are squeezed, which eventually haw encourage them to andante rather than process supplies.

"China ease has some subsidies around lubricator and petrol prices relative to other countries," said Ben Westmore, commodities shrink at the National Australia Bank, adding that it remained to be seen if the toll hikes would perceive demand.

"It rattling comes down to margins more than the actualised end toll for oil. If the toll of imports stingy more pricey crude, then it's more likely that they are not going to place it finished the refineries."

In contrast, South Korea, the world's ordinal maximal vulgar lubricator importer, has place pressure on refiners to cut retail lubricator prices as conception of its effort against inflation.

Uncertainty in the lubricator market and anxiety that the rally haw hit separate its course has diluted recent trade volumes. Volatility has subsided after surging in primeval March, Reuters accumulation showed.

"There's venture on the upside and downside. It's belike caused a lot of market participants to wait-and-see," Westmore said.

(Editing by Ed Lane)

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