CNN International – Oil extended recent sharp losses on Tuesday along with other commodities, on concerns that high energy and raw material costs may hit demand and slow global economic growth.
U.S. light crude oil was trading 14 cents lower at $69.27 a barrel by 0719 GMT, after hitting a low of $68.51 that followed Monday’s $2.63 plunge.
London Brent crude was down 25 cents to $69.42 a barrel.
Oil prices have fallen more than 6 percent since last Thursday after reports signalled that high energy costs were hitting global fuel demand and consumer confidence.
“Prices are still reacting to statistics that are basically saying oil demand is decreasing. And Chinese oil imports decreased in April, for the first time in the year,” said John Brady, an energy broker with ABN AMRO in New York.
On Monday, U.S. crude dropped more than 3 percent. Greece’s finance minister said oil is a downside risk to “strong” global growth.
“Everybody has got a bit jumpy,” said Mark Mathias, managing director of Dawnay Day Quantum hedge fund. “We’ve seen very sharp rises over the last couple of months on equities and commodities, so it’s no surprise it’s being marked down a bit.”
