Oil Falls Most in 3 Years as Slowing Economy Threatens Demand (Margot Habiby)

Created by : Airlight View profile

Oil

July 15 (Bloomberg) -- Crude oil tumbled 5 percent, the most in more than three years, amid concern that a slower U.S. economy will curtail demand for oil and gasoline.

Oil futures dropped as Federal Reserve Chairman Ben S. Bernanke said risks to growth and inflation have risen, in testimony to the Senate Banking Committee.

{xtypo_quote_right} U.S. gasoline demand has fallen for 11 consecutive weeks through July 4, amid record pump prices which topped $4 a gallon for a fourth consecutive week, according to MasterCard Inc. {/xtypo_quote_right}

``We're getting to the point where the market's looking at an increasing likelihood of a deep recession,'' said James Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.

Crude oil for August delivery fell $7.38, or 5.1 percent, to $137.80 a barrel at 1:13 p.m. on the New York Mercantile Exchange. It was the biggest percentage drop since Dec. 27, 2004. Oil fell as much as $9.26 to $135.92 today. Futures reached a record $147.27 a barrel on July 11 and have risen 86 percent in the past year.