WASHINGTON (dpa-AFX) - Oil futures settled sharply lower on Tuesday as concerns about the outlook for demand, and rising prospects of increased supply in the market weighed and pushed the commodity's prices to the lowest level in about 11 weeks.
In a major policy shift, the U.S. on Monday sided with Russia on a UN General Assembly draft resolution that called for a de-escalation, an early cessation of hostilities and a peaceful resolution of the war in Ukraine.
Data showing a sharp deterioration in U.S. consumer confidence weighed as well on oil prices.
West Texas Intermediate Crude oil futures for April settled lower by $1.77 or about at $68.93 a barrel.
Brent crude futures were down $1.70 or 2.29% at $72.61 a barrel a little while ago.
Worries about global economic growth have resurfaced following U.S. President Donald Trump confirming plans to go ahead with plans to impose a 10% tariff on energy imports from Canada. He also said that a 25% tariff will be levied on goods from Canada and Mexico.
A 10% levy on imports from China already in place, it is feared that the moves by the Trump administration will significantly slow down global economic growth.
The Conference Board's report said the consumer confidence index dropped to 98.3 in February, from an upwardly revised reading of 105.3 in January. Economists had expected the index to dip to 103.0 from the 104.1 originally reported for the previous month.
The report also said the present situation index, which is based on consumers' assessment of current business and labor market conditions, fell to 136.5 in February from 139.9 in January.
The expectations index, which is based on consumers' short-term outlook for income, business, and labor market conditions, also slumped to 72.9 in February from 82.2 in January.
Investors now await weekly oil reports from the American Petroleum Institute and U.S. Energy Information Administration.
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