LONDON (SHARECAST) - Crude oil futures fell on Monday on growing fears about rising inventories and as the dollar strengthened.
Crude oil for October delivery fell 72 cents to $73.10 a barrel on the New York Mercantile Exchange.
A fading rally on Wall Street also pressured oil prices as worries about economic growth hit sentiment. The latest in a long line of grim economic data showed new new jobless claims rose above 500,000 last week. As the outlook becomes increasingly sombre, oil prices have also been hit by rising stockpiles.
Data from the Department of Energy showed US oil stockpiles at their highest level in nearly 27 years. This week’s EIA report, due Wednesday, is expected to show weekly crude stocks declined by 400,000 barrels.
Among precious metals gold settled a touch lower in light trading. Gold for December delivery fell 30 cents to $1,228.50 an ounce on the Comex division of the New York Mercantile Exchange.
Many traders are sitting on the sidelines ahead of key US housing and GDP data out later this week.
