LONDON (SHARECAST) - Persistent concern about the strength of the global economy drove crude oil prices lower on Tuesday. Crude oil for September delivery settled $1.23 lower at $86.65 a barrel on the New York Mercantile Exchange. September Brent crude futures fell 44 cents to settle at $109.47 a barrel. Concern about the risk of a global recession has weighed on oil markets in recent weeks. Weak economic data from the US and Europe has triggered fears that demand for fuel could be hit. Fresh European data sent crude lower while talks between German Chancellor Angela Merkel and French President Nicolas Sarkozy did little to sooth nerves about the euro zone crisis. Germany reported slower-than-expected growth of 0.1% in the second quarter confounding expectations of 0.4% growth. Combined GDP for the 17 euro-zone members grew by 0.2% from the first quarter, the weakest rate since 2009, and the latest sign that the region could be slipping back into recession. Data from the US provided a mixed snapshot with stronger than expected industrial output in July and a drop in new home construction. Gold futures settled the day at a record high on growing unease about slowing growth in the EU and US. Gold for August delivery rose $26.90 to settle at $1,782.40 an ounce on the Comex division of the New York Mercantile Exchange. The most actively traded December contract gained $27 to settle at $1,785 an ounce.

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