Oil prices fell nearly 3 percent on Tuesday as euro zone fiscal problems and downbeat data on the Chinese and US economies made investors more risk averse and fueled concerns about economic growth. US crude for August fell $2.31, or 2.95 percent, to settle at $75.94 a barrel, having tumbled as low as $75.21. ICE Brent crude fell $2.15 to settle at $75.44. Expectations that Tropical Storm Alex will only skirt the Gulf of Mexico's main energy production centers kept pressure on oil prices. Prices hit a seven-week high above $79 a barrel intraday on Monday, before ending lower as the threat eased. “It is a return to risk aversion,” said Eugen Weinberg, a commodity analyst at Commerzbank in Frankfurt. “Gold is outperforming other commodities, a sign of a move to safe havens, and base metals are down on worries over the economy.” “The oil market is no longer worried about Tropical Storm Alex as it looks like it will avoid oil facilities.” Oil declined along with equities and the euro on concerns about whether Europe's banks can repay 442 billion euros ($545.5 billion) to the European Central Bank. The mood worsened after a report from the industry group the Conference Board showed US consumer confidence fell steeply in June. Adding to concerns about economy and demand for oil, the Board corrected its leading economic index for China to a 0.3 percent gain in April rather than the 1.7 percent rise earlier reported. The dollar's strength added pressure to the commodities complex.
