Oil is falling fast in early morning trade Tuesday as worries about China's economy losing steam as well as a decline in European manufacturing pushed energy demand lower. A resulting decline in bourses worldwide too has contributed to a fall in oil prices. Gold, meanwhile, is on the rise as its allure as a safe haven increased once again as the European Central Bank cautioned that the region's banks may post further losses, coupled with worries about a slump in global growth. At 0755 ET, Brent crude is down 3.4% at $72.15 a barrel, while light sweet crude is down 2.4% at $72.18, and natural gas is up 0.1% at $4.35 a million British thermal units. Gold is up 0.8% at $1,224.70 an ounce, while silver is down 0.2% at $18.38 an ounce, and copper is 2.3% weaker at $3.03 a pound. China's official purchasing managers' index for May fell to 53.9 from 55.7 the previous month, falling short of market expectations. Meanwhile, HSBC's Markit research group reported that its eurozone manufacturing purchasing manager's index fell to 55.8 from 57.6. Also in Europe, the ECB warned that banks in the euro zone could face about $239.3 billion in write downs this year and next amid an uncertain economic outlook. BP plc ( BP ) fell to its lowest level in 18 years as it abandoned efforts to plug its oil well leak through the so-called top kill method in the Gulf of Mexico. As a result, the flow of oil is unlikely to stop until relief drilling is completed in August. AngloGold Ashanti Ltd ( AU ) said it stopped supplying services to the Orkney mines which are currently under provisional liquidation, having previously been owned by Pamodzi Gold Ltd ( PZG ). Meanwhile, Mining Weekly reported that Grand TG Gold Holdings Ltd (8299), a Chinese consortium, is looking to gain ownership of the Orkney gold mine.

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