Oil falls on demand concerns
Crude prices settle lower after climbing near a 6-month high in the previous session.
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| Click the chart for current oil prices. |
NEW YORK (CNNMoney.com) -- Oil prices fell Monday, after hitting a high for the year in the previous session, as optimism about an economic recovery was tempered by ongoing concerns about weak demand and record-high inventories.
Light, sweet crude for June delivery fell 13 cents to settle at $58.50 a barrel Monday.
On Friday, oil closed to settle at $58.63 a barrel, its highest close in nearly six months.
The retreat came as European and U.S. stock markets tumbled. Many oil traders view the stock market as a leading indicator of economic activity and future energy demand. As a result, the price of oil tends to rise and fall with the major stock indexes.
Oil prices got a boost in recent sessions by signs the U.S. economy, the world's largest consumer of crude, was headed for a recovery. But that tone has been kept in check by the poor fundamental backdrop for the oil market, which has driven prices down from last summer's all-time high of $147 a barrel.
Demand for oil remains weak as the global economy falters and U.S. crude supplies are at their highest levels since 1990.
The market was also pressured by a stronger dollar. A more robust greenback pushes crude prices lower because oil is priced in U.S. dollars across the world.
Gasoline: Retail gasoline prices increased overnight for the 13th time in a row, the motorist group AAA reported. The national average price for a gallon of regular unleaded gasoline rose 1.3 cents to $2.226 from the previous day's price of $2.213. 
