Gasoline fell on concern that Europe’s debt crisis will weaken the global economy and fuel demand and as German business confidence slid.
Futures declined as European Union President Herman Van Rompuy warned today against “a tendency of losing the sense of urgency.” German business confidence sank in September, the Ifo institute in Munich said.
“There’s more bearish economic news and discord among European leaders about integration of the banking system and Spanish needs for a bailout,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
Gasoline for October delivery fell 1.19 cents, or 0.4 percent, to $2.9306 a gallon at 9:43 a.m. on New York Mercantile Exchange. Prices sank 2.4 percent last week.
The Ifo institute said its business climate index for Europe’s biggest economy, based on a survey of 7,000 executives, dropped for a fifth straight month to 101.4 from 102.3 in August. German Chancellor Angela Merkel and President Francois Hollande disagreed on a timetable for starting joint oversight of Europe’s banking sector.
The euro slid 0.5 percent against the dollar at 9:42 a.m. in New York. A stronger dollar reduces the investment appeal of commodities. In the U.S., the Standard & Poor’s 500 Index retreated 0.4 percent.
“The economic uncertainty that seems to be our strongest driver appears to be rising again and now the dollar is up pretty strongly and equities are down,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut.
Regular gasoline at the pump slipped for a 10th consecutive day, dropping 0.6 cent to $3.808 a gallon yesterday, AAA data show. Prices reached a 2012 high of $3.936 on April 4.
October-delivery heating oil declined 1.66 cents, or 0.5 percent, to $3.1041 a gallon on the exchange, the first loss in three days.
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