Topic: Oil prices fall further as equities slump
World oil prices sank on Monday, extending heavy pre-weekend losses and mirroring slumping stock markets as traders eyed weak consumer confidence in the United States.
New York's main futures contract, light sweet crude for delivery in September, dropped 1.69 dollars to 65.82 dollars a barrel. Brent North Sea crude for October delivery shed 1.71 dollars to 69.73 dollars a barrel around midday trade in London. Earlier, London Brent and New York crude had hit two-week lows of 69.54 dollars and 65.65 dollars respectively.
Prices had nosedived before the weekend as a weak US consumer confidence reading dampened hopes for a recovery in demand in the world's largest energy-consuming country.
New York crude had shed 3.01 dollars and London Brent lost 1.07 dollars on Friday after the University of Michigan reported that its consumer sentiment index unexpectedly dipped to 63.2 in August from 66.0 in July.
"Crude prices have continued to come under pressure (on Monday), tracking equity markets lower as market participants become wary about recovery, after poor sentiment data Friday highlighted the fragility of any recovery," said Sucden analyst Nimit Khamar.
Global stock markets plunged Monday, despite news that Japan has emerged from recession, as investors questioned the strength of a tentative worldwide economic recovery, dealers said.