NEW YORK (MarketWatch) -- Crude-oil futures tumbled more than 3% Monday, falling to their lowest level in nearly six weeks as heightened worries over the timing of a recovery in the global economy weighed on the sentiment of energy investors.
Light sweet crude for August delivery fell $2.22, or 3.3%, to $64.51 a barrel on the New York Mercantile Exchange. Earlier, the contract hit an intraday low of $63.40, the lowest level for a front-month contract since May 27.
"Today's crude weakness is not surprising and we do feel it shall continue over the near term," said Tariq Zahir, managing member of Tyche Capital Advisors. "Fundamentals are finally starting to come into focus."
"Inventories are at multi year highs along with weaker demand for all crude products globally," he added.
Monday's losses followed oil's 3.5% decline last week, as data showed continuing weakness in the U.S. labor market. Energy Department data also indicated petroleum demand remained week in the U.S., and inventories stood at high levels.
Also in energy trading, August reformulated gasoline fell 3.29 cents, or 1.8%, to $1.7579 a gallon and August heating oil dropped 4.12 cents, or 2.4%, to $1.6602 a gallon.
August natural gas futures dropped 10.6 cents, or 2.9%, to $3.509 per million British thermal units.
"The normal summer time lull in trading may put some pressure and profit taking into the market, as traders take some money off the table for the next 30 to 45 days," said Kevin Kerr, president of Kerr Trading International.
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