Oil ends lower amid flu concerns
Market worries that outbreak will further suppress already weak demand for energy.
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| Click on the chart to see other commodity prices. |
NEW YORK (CNNMoney.com) -- Oil prices ended just under $50 a barrel Tuesday as investors see the global swine flu outbreak chipping away at already weak demand for energy.
Light sweet crude for June delivery ended down 22 cents to $49.92 a barrel.
The price of crude oil has fallen from its peak of $147 a barrel as the global recession has cut into demand. A report from the government due Wednesday is expected to show yet another increase in petroleum stockpiles.
According to a consensus estimate compiled by Platts, an energy information provider, analysts expect crude oil stocks to be up by 1.8 million barrels for the week ended April 24. Stockpiles of gasoline are forecast to grow by 900,000 barrels while inventories of distillates - used to make home heating oil - are expected to grow by 1.3 million barrels.
As of last Wednesday, U.S. petroleum inventories were already at a 31-month high of 1.074 billion barrels, according to Platts. The glut of supply has kept the price of crude hovering around the $50 a barrel mark in recent months.
The global economy has been struggling to pull out of a recession, and an outbreak of swine flu is threatening to slow recovery even further. By Tuesday, 98 cases had been confirmed worldwide, including 50 in the United States. Monday, the World Health Organization raised its alert level from three to four on its six-level scale.
If the outbreak becomes a widespread pandemic, thetravel industry - and demand for plane fuel - will take a hit, further crippling already weak demand for oil.
Oil traded as low as $48.55 during the session. But a rally in U.S. stocks helped push the contract higher as settlement approached. Wall Street was encouraged by a better-than-expected read on consumer confidence and a report indicating that the rate of decline in home prices had slowed.
Gas prices: The price at the pump fell for the fourth consecutive day. A gallon cost $2.048, down from the previous day's $2.05, according to survey results released Wednesday by motorist group AAA. That's down $2.066, or 50%, from the record high price of $4.114 last July. 
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