Crude oil futures prices continued weaker early this morning on lingering concerns that the weak economy will continue to slash oil demand.

 

Nymex light, sweet crude oil for September delivery was down 1.7%, or $1.12, at $66.39 a barrel. Since Friday's settlement it traded in range of $67.68 to as low as $65.65, which was the weakeset intraday price since July 31. Crude oil hasn't settled below $66 since July 29. ICE Sep Brent crude was down $1.34 at $70.10 a barrel.

Traders said continued weakness from Friday's steep sell-off set the tone for Monday's trade. Crude futures shed $3.01, or 4.3%, on Friday, to settle at a two-week low of $67.51 a barrel after a survey showed a sharp drop in U.S. consumer confidence, while forecasters had expected a rise.

Global share prices were lower today, reflecting concerns over when economic recovery will reappear in the U.S., the world's biggest economy.

Friday's sell-off knocked prices out of a recent range, traders said. "As we start this new week, the burden of proof is with the bulls," said Peter Beutel, president of trading firm Cameron Hanover.

Traders were keeping an eye on Hurricane Bill, which has been the first hurricane of the so-far quiet season. Early forecasts showed the storm may head up the U.S. East Coast, rather than threaten the Gulf Coast region, the hub of U.S. oil and natural gas output and refining operations. Tropical Storm Claudette made landfall on the Florida panhandle, but also wasn't seen as a threat, while weaker Tropical Depression Ana also didn't appear to be a threat to the oil sector, and was projected to be moving toward the Gulf Coast of Florida.

 

Source: Wall Street Journal