Crude Oil Dips Below $80 --- Economic Fears Send Crude Lower; Watching Stock Market
Global demand worries pummeled oil prices in early Asia trading on Tuesday, with light, sweet crude for September delivery falling nearly 5% to a 11-month low of $76.56 a barrel, 33% off its April 29 high, on the New York Mercantile Exchange.</br></br>This followed a drop of $5.57, or 6.4%, to $81.31 a barrel in New York on Monday, a reaction to Standard & Poor's downgrade of U.S. debt on Friday.</br></br>Brent crude on the ICE futures exchange on Monday settled down $5.63, or 5.2%, to $103.74.</br></br>The declines mark a steep drop from levels reached earlier this year. Benchmark crude in the U.S. shot to nearly $115 a barrel in May.</br></br>At the time, the U.S. economic recovery appeared more stable, while the civil conflict in Libya spurred fears of widespread supply disruptions among major oil exporters.