May 13 (Bloomberg) -- Crude oil declined for a second day in New York trading amid signs that near-record prices may curb demand in emerging markets.

China's oil imports declined in April as crude costs prompted refiners to cut demand, and India's industrial production grew at the slowest pace since 2002, reports yesterday showed. Rising energy demand in China and India has contributed to a doubling in oil's price the past year.

``If you have a continuation of that drop in Chinese imports, if that extends beyond a month, and if you have a slowdown in India, that obviously changes the dynamic'' for the oil market, said Kyle Cooper, director of research at IAF Advisors in Houston.

Crude oil for June delivery fell 44 cents, or 0.4 percent, to $123.79 a barrel at 8:47 a.m. Sydney time in after-hours electronic trading on the New York Mercantile Exchange. Prices have risen 98 percent in the past year. Yesterday, futures dropped $1.73, or 1.4 percent, to settle at $124.23 a barrel, after rising to $126.40, the highest since trading began in 1983.

Oil imports to China, the world's second-biggest consumer, dropped 3.9 percent from a year earlier to 14.24 million metric tons, about 3.5 million barrels a day, the Beijing-based Customs General Administration of China said on its Web site yesterday. The decline was the first in 18 months.

In India, production at factories, utilities and mines rose 3 percent from a year earlier after gaining 8.6 percent in February, the statistics office said in New Delhi. Economists surveyed forecast a 5.8 percent increase.

`Speculative Bubble'

``It's the tail-end of a speculative bubble,'' said Walter Zimmerman, vice president of United Energy Inc. in New Jersey. ``The question is, have prices gone high enough to cause an economic contraction that will give us more than a seasonal retreat?''

Brent crude oil for June settlement fell $2.49, or 2 percent, to $122.91 a barrel on London's ICE Futures Europe exchange yesterday. The contract touched a record $125.90 on May 9.

China ordered banks to set aside larger reserves for the fourth time this year after inflation accelerated to almost the fastest pace since 1996. That may cool growth in the world's fastest-growing major economy and curb commodities demand.

To contact the reporter on this story: Robert Tuttle in New York at rtuttle@bloomberg.net

Last Updated: May 12, 2008 19:05 EDT