COLUMBUS, Ohio — Oil prices fell Tuesday as consumer confidence in the U.S. hit an all-time low in December and home prices dropped sharply, with few signs that the real-estate market has hit bottom.
Crude prices had risen for the first time in a week Monday with the armed conflict between Israel and Palestinian militants entering a third day. Israel on Tuesday said it might suspend its Gaza offensive to give Hamas militants an opening to halt cross-border rocket fire.
Violence in the oil-rich Middle East, however, was drowned out by more bad economic news in the United States.
Light, sweet crude for February delivery fell 99 cents to $39.03 a barrel on the New York Mercantile Exchange in very light trading.
Retail gasoline prices continued a descent toward $1.60 per gallon nationally as consumption by American motorists falls away.
The deteriorating economy has made nearly all geopolitical unrest in regions that could lead to supply shortages secondary on crude markets.
“Eight months ago, this would have sent this market on an upward tear,” said Jim Ritterbusch, president of Ritterbusch and Associates.
Prices at the pump edged lower overnight, falling 0.3 cents to $1.616 a gallon, according to auto club AAA, the Oil Price Information Service and Wright Express. In Denver, unleaded gas averaged $1.457, down 0.9 cents from Monday.
Prices are down 20.9 cents from a month ago and $1.43 from a year ago.
Americans are clocking billions fewer miles on the road as millions of people lose their jobs or cancel vacations.
And consumption remains weak despite low prices. Gasoline consumption for the year through Friday is down 3.2 percent compared with last year, according to the weekly SpendingPulse report by MasterCard released Tuesday afternoon.
For the week ended Friday, consumption was down 2.9 percent versus the prior week.
