Michael Galvis: Oil Prices Slip With Grim Economic Outlook.

NEW YORK (CNNMoney.com) — Oil prices slipped Tuesday as investors focused on the dour economic outlook, waning global demand for energy and uncertainty regarding the Obama administration’s plans to revitalize the economy.

U.S. crude for March delivery fell 63 cents to $38.93 a barrel.

Treasury Secretary Tim Geithner on Tuesday outlined the administration’s plan to prop up the financial industry, saying the program could provide U.S. banks with up to $1 trillion in new capital.

“People are worried about the trillion dollar number,” said Mark Waggoner, president of trading firm Excel Futures in Huntington Beach, Calif. “Where is this money coming from? That’s really what it boils down to.”

Meanwhile, the Senate approved an $838 billion plan to stimulate the economy through new spending programs and tax cuts. The measure needs to be reconciled with one passed last month by the House, and passed again by both houses of Congress. Democrats want President Obama to be able to sign the final measure on Presidents Day, next Monday.

Concern about falling demand due to the troubled economy has sent oil prices down more than $100 from a record high of $147.27 a barrel last summer.

Oil inventories: As demand for oil has dropped off, supplies of unused crude in the United States, the world’s largest oil consumer, have been building. Stockpiles of crude oil have grown by millions of barrels per week over the past month.

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