Oil settles below $70

Chinese stocks plummet, prompting global selloff and placing pressure on crude.

EMAIL  |   PRINT  |   SHARE  |   RSS
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Julianne Pepitone, CNNMoney.com staff reporter

Click on the chart to see other commodity prices.
Top 10 Cash for Clunkers cars
These are the most popular cars purchased under the Cash for Clunkers program.
Should the $8,000 first-time homebuyer tax credit be extended beyond Nov. 30?
  • Yes
  • No

NEW YORK (CNNMoney.com) -- Fears over the strength of China's markets dealt a blow to oil prices Monday, bruising optimism about economic recovery and sending crude almost 4% lower to below $70 a barrel.

U.S. crude for October settled $2.78 lower to $69.96 a barrel, having fallen as low as $69.13 earlier in the session.

U.S. stocks tumbled in late afternoon trading, extending a broader selloff across global markets.

"Both crude and stocks are gauging the economic upturn, and today's news threw cold water on it," said James Cordier, president at Liberty Trading Group.

The American market took cues from Chinese stocks, which sank 6.74% to a three-month low on worries about bank lending. China is the world's second-largest oil consumer, after the U.S.

Crude prices have tended to follow stocks recently, as investors look to the broader markets to try to gauge when fuel demand will rebound.

"We're seeing that earlier hopes on growth may have been overstated," Cordier said. "Investors are thinking: If their economy is not doing well, whose is?"

The Organization of the Petroleum Exporting Countries -- whose members produce about 40% of the world's crude -- will meet Sept. 9 in Vienna to discuss output targets. According to news reports, several OPEC officials have said the group is likely to leave levels unchanged.

Earlier this month, recovery hopes helped push crude to settle at a 10-month high near $75 a barrel, as U.S. stocks briefly hit 2009 records. But the failure to cross the $75 threshold dented confidence, and recent data have painted a mixed picture -- leaving investors to question when fuel demand will recover.

Cordier predicted crude will trade in a tight band between $60 and $65 in the fourth quarter. To top of page

They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.