U.S. crude oil price fell on Tuesday as weak economic data fueled demand fears.
The U.S. Commerce Department reported that housing starts for April fell 10.6 percent from March, missing economists' estimate of a moderate rise. This indicated the housing market is still struggling for recovery, boosting concerns about the U.S. economic outlook and arousing demand fears among crude investors.
The Federal Reserve said factory production fell 0.4 percent in April, its first decline in 10 months, mainly because of a drop in auto manufacturing after the Japan earthquake and tsunami led to a parts shortage.
European debt woes still weighed on oil as investors kept close eyes on Greece's and Portugal's finance health. Worries about Greek debt restructuring made the euro vulnerable against the dollar. The stronger dollar also pressured oil.
Besides, the flooding of the Mississippi River was no longer a big threat to the eight refineries in Louisiana after U.S. Army engineers began opening flood gates. Gasoline future of the New York market lost another 4 percent after tumbling nearly 5 percent on Monday.
Light, sweet crude for June delivery dipped 46 cents, or 0.47 percent, to settle at 96.91 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for June delivery also dropped and last traded around 110 dollars a barrel.
