RTTN: Oil Prices Drop as Economic Worries Resurface
--Crude-oil slumps Tuesday as stocks, euro fall
--Investors skeptical about European Central Bank intervention
--U.S. futures recently down 54 cents at $95.93 a barrel
NEW YORK--U.S. crude futures headed lower Tuesday as stock markets fell on persistent worries about the broader economic outlook, despite comments from the European Central Bank hinting at help for struggling euro-zone countries.
Light, sweet crude for October delivery recently traded 54 cents lower at $95.93 a barrel on the New York Mercantile Exchange, after trading as high as $97.37 a barrel earlier in the session. Brent crude on the ICE futures exchange traded 66 cents lower at $115.12 a barrel.
Prices shot from positive to negative territory early in the session as investors were skeptical about comments from European Central Bank president Mario Draghi that the bank could buy short-term government bonds of struggling countries.
The potential intervention, which some officials cautioned may still be some time off, comes ahead of the ECB's policy meeting Thursday. Mr. Draghi's statement in July that he will do "whatever it takes" to save the euro, has contributed to the rise in oil and other markets over the past month.
"We're looking towards Europe and the comments by Draghi today," said Phil Flynn, an energy analyst at Price Futures Group in Chicago. He noted, however, that the euro was trading lower against the U.S. dollar, suggesting that markets remain cautious.
Earlier Thursday, oil futures neared the highest level in a week, but they still appear unable to break out of the recent trading range between roughly $94 and $98 a barrel.
While U.S. fuel-product supplies have dropped in recent weeks compared to average levels, signs of weakness in the global economy, particularly in China, have tempered hopes about continued oil and fuel demand.
Still, traders, worried about increasing tension in the Middle East, are reluctant to bet on big declines. Rhetoric from Israel and Iran about Iran's nuclear program has grown more contentious in recent weeks.
And a report from The New York Times over the weekend said the U.S. is undertaking "a range of steps short of war," such as mine-sweeping exercises in the Persian Gulf, in an effort to deter an Israeli attack on Iran's nuclear facilities.
Front-month October reformulated gasoline blendstock, or RBOB, recently traded 1.36 cents higher at $2.9864 a gallon. October heating oil recently traded 0.09 cent higher at $3.1811 a gallon.
Write to Jerry A. DiColo at jerry.dicolo@dowjones.com.
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