RTTNews - Crude oil plunged 4% on Monday amid demand concerns as investors bet on a slower-than-hoped economic recovery. The drop took crude to its lowest level in nearly two weeks.
Light sweet crude for August delivery settled at $64.05 per barrel, down $2.68 on the session. Oil touched an intraday low of $63.40.
A stronger dollar hurt the metal's hedge appeal. The dollar climbed against the higher-yielding euro and sterling as lower global stock markets fueled risk aversion.
The Institute for Supply Management said its index of activity in the service sector rose to 47.0 in June from 44.0 in May, although a reading below 50 indicates a contraction. Economists had been expecting the index to come in at 46.0.
Investors also awaited the Energy Information Administration inventory report on Wednesday. Last week's report showed crude oil inventories decreased by 3.7 million barrels from the previous week. Experts predicted a decline of about 2.2 million barrels.
Oil has lost $6.84 in the month of July. On a long-term basis, oil is down more than $80 from the record $147.27 reached nearly a year ago.
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