Michael Galvis: Oil Prices Fall

NEW YORK (CNNMoney.com) — Oil prices fell more than $4 a barrel Tuesday as worries about a recovery in demand took center stage amid heightened concern that the global recession will continue to drag on.

That feeling was exacerbated by two dismal economic reports out of the United States, the world’s largest oil consumer.

By the end of trading, U.S. crude for March delivery had fallen $4.15 to $41.58 a barrel. Falling demand due to the slowing economy has caused oil prices to plummet more than $100 a barrel from a record high of $147.27 a barrel last July.

A turnaround in demand won’t occur “until we start seeing an economic expansion in the United States,” said Rachel Ziemba, energy analyst with RGE Monitor in New York.

The Labor Department reported a large spike in unemployment in December, and another closely watched report from a private research firm showed consumer confidence sank to an all-time low in January.

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