NEW YORK: Oil prices fell nearly 2 percent on Tuesday after data showing a drop in US consumer confidence spurred concerns about the economy and sent investors into safer havens.
An index of US consumer confidence dropped to 46.6 in July from 49.3 in June, below analyst expectations of 49.0, recording its second consecutive decline as sentiment remained hampered by a difficult job market.
The decline in sentiment, as well as disappointing corporate earnings results, pushed stock markets lower, while the dollar and the yen gained as investors dumped riskier assets.
US crude traded $1.24 lower at $67.14 a barrel at 2:02 p.m. EDT (1802 GMT), while London Brent fell $1.04 to $69.77 a barrel.
Optimism that a turnaround in the global economy could lift slumping fuel demand has supported crude prices this year.
Crude fell from record highs near $150 a barrel last July to below $33 a barrel in December as the recession battered world consumption. Meanwhile, global stocks fell on Tuesday.
The slide in equity markets snuffed an 11-day winning streak of Britain’s top share index, while Japan’s Nikkei share average ended nine straight sessions of gains, its longest winning run since 1988.
The Conference Board, an industry group, said its index of consumer attitudes slid to 46.6 in July from 49.3 in June. Economists had expected a reading of 49.0, based on the median of 64 forecasts in a Reuters poll.