Oil falls 3% on flu outbreak
Crude futures tumble as concerns about a possible pandemic weigh on the market.
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| Click the chart for current oil prices. |
NEW YORK (CNNMoney.com) -- The price of oil fell nearly 3% Monday as concerns about the potential economic repercussions of a swine flu pandemic weighed on the stock market and lifted the U.S. dollar.
Light sweet crude for June delivery settled down $1.41 a barrel at $50.14.
As many as 103 deaths in Mexico are thought to have been caused by swine flu, which the World Health Organization has called a "public health emergency of international concern."
While the flu appears to have originated in Mexico, cases have spread to countries around the world, raising concerns about the possibility of a pandemic. That curbed investors' appetite for more risky assets, such as stocks, and boosted demand for the U.S. dollar as a safe haven. Global stocks ended mixed, but U.S. stocks were lower with just over an hour left to go in the session.
Many oil traders view the stock market as a proxy for the overall economy and, as a result, oil prices often rise and fall in tandem with the major stock indexes.
Oil prices were also driven lower by a stronger dollar, since crude is priced in the U.S. currency. The dollar gained 1.6% versus the euro.
Meanwhile, the market remains concerned about the weak outlook for energy demand as the global economy continues to deteriorate. Oil has hovered near $50 a barrel in recent sessions, and is down nearly $100 from last year's all-time high.
The Organization of the Petroleum Exporting Countries called on non-member countries, such as Russia, to cut production to help prop-up prices.
OPEC's secretary general, Abdalla Salem al-Badri, said Sunday that prices are too low for OPEC producers to invest in production and hinted the cartel could reduce output further when it meets May 28. 
