Crude prices fell Tuesday as investors grew concerned about the U.S. economy, despite Congress having passed the bill to raise the debt ceiling.
After the House passed the spending-cutting bill late Monday, the Senate narrowly approved it Tuesday, averting a debt default. But this bill helped little with market sentiment as investors showed more concerns about U.S. weak economic data.
On top of the disappointing GDP last Friday and the worse-than- expected manufacturing ISM Monday, a report showed U.S. consumer spending in June fell 0.2 percent after an 0.1-percent up-tick in May, giving evidence to a slow economic recovery. Numbers also point to weak manufacturing data in both Europe and China, further worrying crude investors.
Moreover, U.S. equities are headed for the longest declining streak since October 2008. The blue-chip Dow Jones Index fell below the critical supporting level of 12,000.
Energy companies resumed production in the Gulf of Mexico after temporary shutdowns due to a tropical storm. The inventory data, scheduled to be released Wednesday, is expected to post an increase.
Light, sweet crude for delivery in September fell 1.10 dollars, or 1.16 percent, to settle at 93.79 dollars a barrel on the New York Mercantile Exchange. In London, Brent Crude for September dropped 35 cents, or 0.30 percent, to close at 116.46 dollars a barrel.
After the House passed the spending-cutting bill late Monday, the Senate narrowly approved it Tuesday, averting a debt default. But this bill helped little with market sentiment as investors showed more concerns about U.S. weak economic data.
On top of the disappointing GDP last Friday and the worse-than- expected manufacturing ISM Monday, a report showed U.S. consumer spending in June fell 0.2 percent after an 0.1-percent up-tick in May, giving evidence to a slow economic recovery. Numbers also point to weak manufacturing data in both Europe and China, further worrying crude investors.
Moreover, U.S. equities are headed for the longest declining streak since October 2008. The blue-chip Dow Jones Index fell below the critical supporting level of 12,000.
Energy companies resumed production in the Gulf of Mexico after temporary shutdowns due to a tropical storm. The inventory data, scheduled to be released Wednesday, is expected to post an increase.
Light, sweet crude for delivery in September fell 1.10 dollars, or 1.16 percent, to settle at 93.79 dollars a barrel on the New York Mercantile Exchange. In London, Brent Crude for September dropped 35 cents, or 0.30 percent, to close at 116.46 dollars a barrel.
