Oil prices fell more than 3% towards $77 a barrel today, pressured by bearish economic data that dented confidence about a potential recovery in energy demand.
Weaker US consumer sentiment in October and consumer spending cuts in September served as a reminder that the economy is still struggling, following yesterday's optimism about US GDP growth in the third quarter.
US crude for December delivery dived $2.70 to $77.17 a barrel by 5:55p.m. EDT, London Brent crude fell $2.60 to $75.44.
US consumer spending fell 0.5% in September, the first fall in five months, according to data from the US Commerce Department.
And in October consumer sentiment slipped as Americans continue to worry about their finances.
Higher equities and a weaker dollar have pushed crude prices higher up 12% so far in October as investors look to wider macro economic data for signs of economic recovery and a potential rise in energy demand.
A stronger US dollar against the euro contributed to oil's losses today. Oil prices tend to fall when the dollar rises as it makes the dollar-denominated commodity more expensive for holders of other currencies.
