West Texas Intermediate crude will probably decline this week on concern that emerging economies will slow, curbing fuel demand, according to a Bloomberg survey. Seventeen of 31 analysts, or 55 per cent, forecast crude will decrease through February 7 . Eight respondents, or 26 per cent, projected prices will gain, and six said there will be little change. Last week, 47 per cent of analysts projected a drop. US equities fell to a two-month low on Jan. 29 as investors pulled money at the fastest rate on record from exchange-traded funds that track emerging markets, amid cuts to central-bank stimulus and slowing growth in China . More than $7 billion flowed from ETFs investing in developing-nation assets in January, the most since the securities were created, data compiled by Bloomberg show. "Oil and equities are being tossed around by concerns over whether emerging markets will be OK," said Bill O'Grady , chief market strategist at Confluence Investment Management in St. Louis , which oversees $1.4 billion . "I don't believe the turmoil is over. Growth in emerging economies has become dependent on Fed easing and Chinese growth, neither of which can be counted on." Emerging economies have benefited from cheap money as three rounds of Federal Reserve bond-buying pushed capital into their borders in search of higher returns. The central bank began paring the purchases by $10 billion to $75 billion this month and announced plans Jan. 29 to reduce the amount by another $10 billion . A Chinese Purchasing Managers' Index fell to 49.5 from 50.5 in December, HSBC Holdings Plc and Markit Economics said in a January 29 statement. The reading compared with the median 49.6 estimate in a Bloomberg News survey of 14 economists. A number below 50 indicates contraction. US crude supplies surged 6.42 million barrels to 357.6 million last week, an Energy Information Administration report on January 29 showed.
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