Oil extended losses in Asian trade yesterday, hovering around US$77 a barrel as waning consumer confidence in the United States affected investors' appetite. New York's main contract, light sweet crude for delivery in September, was down US$0.11 at US$77.39 a barrel in afternoon trade. London's Brent North Sea crude for September was flat at US$76.13. "Falling consumer confidence (in the United States) and the growing likelihood of a double-dip in house prices have put a further dent in the already deteriorating outlook for consumption growth," research house Capital Economics said. "Without consumers on board, the economic recovery is looking dangerously vulnerable." The United States is the world's biggest economy and the largest energy consuming nation. Oil prices tumbled in U.S. trade Tuesday after a closely-watched survey showed that American consumer confidence had plunged to its worst level in five months due to concerns about unemployment amid an uncertain economic outlook. The Conference Board, a business research firm, said its consumer confidence index, which had declined sharply in June, retreated further this month. The index fell to 50.4 points from 54.3 last month and is now at its lowest level since February.

Source