Crude oil futures fell 3.5%, sliding to three-week low yesterday. Light, sweet crude for August delivery on the New York Mercantile Exchange settled down $2.68 at $72.95 a barrel, the lowest price since June 8; it was the biggest single day decline since June 4.
Crude Oil fell on concerns of a stalling economic recovery after the release of disappointing U.S. reports on manufacturing, unemployment, home sales and construction spending. It reached a low of $72.05, down 9.2% from Monday's high of $79.38 a barrel.
Demand prospects are diminishing over an apparent slowdown in the Chinese and U.S economic recovery, the 2nd and 1st largest oil consumers respectively. It is likely market sentiment will remain negative without any positive economic news. Investors will be paying close attention to today's U.S. Non Farm unemployment data as it is expected payrolls will drop by 100,000.