Oil Tumbles Below $95 on U.S. Economy and European Debt Concern

[Purveyor]

By Mark Shenk

June 15 (Bloomberg) -- Crude oil fell below $95 a barrel for the first time since February on growing signals the U.S. economy is slowing and on concern that Europe’s debt crisis will deepen, reducing fuel consumption.

Futures dropped as much as 5.4 percent after the Federal Reserve Bank of New York’s general economic index slipped to the lowest since November. European finance ministers struggled to break a deadlock on a second rescue plan for Greece, sending the euro and commodities lower. An Energy Department report today showed U.S. fuel use declined for the first time in five weeks.

“People are in full panic mode,” said Stephen Schork, president of the consultant in Villanova, Pennsylvania. “If we don’t hold here hold your breath as the market heads for $90. This is make-it or break it time for the bulls.”

Crude oil for July delivery fell $4.41, or 4.4 percent, to $94.96 a barrel at 1:50 p.m. on the New York Mercantile Exchange. The contract touched $94.01, the lowest level since Feb. 22. Prices are up 23 percent from a year ago.

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