Crude prices retreat on demand concerns

Crude oil prices fell Tuesday on worries that US demand will decline after the Conference Board reported that its US Consumer Confidence Index fell to 52.9 in June from 62.7 in May.

Additionally, equities markets fell globally on renewed concerns about the European debt crisis after the European Central Bank did not renew a program to inject liquidity in to Eurozone banks, and on a revised report that showed China’s economy growing more slowly than had been reported earlier.

Prices were also lower as concerns retreated that Tropical Storm Alex, which is still expected to strengthen to hurricane status, would interrupt oil production in the Gulf of Mexico.

August contracts for West Texas Intermediate crude were down $2.68 to $75.57 per barrel in early afternoon trade on the New York Mercantile Exchange, while Brent crude had dropped $2.50 to $75.09 per barrel on the ICE Futures Europe exchange in London.

Nymex July gasoline futures and July heating oil futures each dropped 7 cents, to $2.07 per gallon and $2.03 per gallon respectively, while August natural gas futures were down 15 cents to $4.58 per million British thermal units.

The retail price of a gallon of regular unleaded gasoline was down 0.1 cent overnight in the United States, to $2.755 per gallon on average, holding out hope for lower prices for drivers over the Independence Day holiday this weekend.