Oil prices fell to near $62 a barrel on Wednesday in Asia growing concerns over a slower-than-expected recovery in the global economy.
Prices were lower for the sixth straight day from a peak of above $73 last week, in tandem with continued weakness in Asian stock markets and a stronger U.S. dollar.
Benchmark crude for August delivery fell 75 cents to $62.18 a barrel at midday in Singapore in electronic trading on the New York Mercantile Exchange. On Tuesday, the contract fell $1.12 to settle at $62.93.
"Worries about the state of the global economy and that the recovery won't be fast enough are causing both the equities and oil markets to tumble," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore.
The global economic data — from rising unemployment to plunging exports — is still grim and most economists think the nearly two-year long recession has not yet bottomed out.
Unemployment in Europe surged in May to a 10-year high with more than 15 million people out of work. In the United States, the jobless rate jumped to a 26-year high of 9.5 percent in June as U.S. employers cut a larger-than-expected 467,000 jobs.
Shum said oil prices face continuous downward pressure and may drop to below $50 a barrel in the coming weeks.
"So far there is no clear evidence of oil demand returning. Prices at $60-$70 a barrel for oil is way too expensive given the weak state of oil demand," he said.
Stockpiles of gasoline have increased steadily for the past four weeks during a time when traffic volumes usually peak. Supply data coming from the Department of Energy on Wednesday is expected to show that trend continuing.
In its short-term outlook released Tuesday, the department said it expects consumption of liquid petroleum to shrink 3.3 percent this year. Still, it expects oil to average about $70 per barrel for second half of the year.
Oil prices have doubled since the beginning of the year and that volatility has brought increased scrutiny from Washington. Federal regulators said Tuesday they would examine whether the government should impose limits on the number of futures contracts in oil and other energy commodities held by speculative traders.
Investors have plowed millions into exchange-traded funds like the United States Natural Gas Fund. The funds allow individuals to buy shares that track commodities like natural gas.
In other Nymex trading, gasoline for August delivery fell 1.56 cents to $1.7172 a gallon and heating oil fell 1.53 cents to $1.5854. Natural gas for August delivery lost 6 cents at $3.369 per 1,000 cubic feet.
In London, Brent prices shed 68 cents to $62.55 a barrel on the ICE Futures exchange.