NEW YORK (CNNMoney.com) -- Oil prices continued to slide Tuesday, as demand for risky assets faded and the dollar gained strength against the euro on mounting fears over a global economic slowdown.
What prices are doing: Crude oil futures for August delivery fell $2.31, or 3.0%, to settle at $75.94 a barrel.
The national average price for a gallon of regular unleaded gas decreased to $2.755, down 0.1 cent from the previous day's $2.756, according to motorist group AAA.
What's moving the market: Risk appetite faded as investors digested a sharp drop in consumer confidence.
The Conference Board reported that consumer confidence slumped to 52.9 this month from 62.7 in May, with the decline reflecting worries about the labor market and economic outlook. Economists surveyed by Briefing.com were expecting the measure to drop to 62.
The looming expiration of the European Central Bank's year-long lending program that worked to boost liquidity also worried investors.
As banks in the euro zone gear up to pay back €442 billion, investors are nervous that end of the program could trigger another credit crunch.
The mounting fears sparked a sell-off in risky assets including stocks and oil, and boosted appeal of safe havens including Treasurys and the dollar.
The stronger dollar, which advanced against the euro and the pound, pressured oil prices because commodities, including oil, are priced in dollars.
What analysts are saying: "Despite the high levels of oil inventories worldwide, market participants do not seem to worry much about fundamentals right now, as it is the equity markets and the strengthening U.S. dollar that drag oil prices lower," said Myrto Sokou, analyst at Sucden Financial, in a research note.
"It is possible that the energy market will receive further pressure in the near term, following the general negative sentiment in the global equity markets, as renewed concerns over euro zone's sovereign debt problems continue to dominate the markets and put risk appetite off the board," she said.
Overnight Avg Rate | Latest | Change | Last Week |
---|---|---|---|
30 yr fixed | 3.80% | 3.88% | |
15 yr fixed | 3.20% | 3.23% | |
5/1 ARM | 3.84% | 3.88% | |
30 yr refi | 3.82% | 3.93% | |
15 yr refi | 3.20% | 3.23% |
Today's featured rates:
Index | Last | Change | % Change |
---|---|---|---|
Dow | 32,627.97 | -234.33 | -0.71% |
Nasdaq | 13,215.24 | 99.07 | 0.76% |
S&P 500 | 3,913.10 | -2.36 | -0.06% |
Treasuries | 1.73 | 0.00 | 0.12% |
Company | Price | Change | % Change |
---|---|---|---|
Ford Motor Co | 8.29 | 0.05 | 0.61% |
Advanced Micro Devic... | 54.59 | 0.70 | 1.30% |
Cisco Systems Inc | 47.49 | -2.44 | -4.89% |
General Electric Co | 13.00 | -0.16 | -1.22% |
Kraft Heinz Co | 27.84 | -2.20 | -7.32% |
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