Crude oil futures fell for the second consecutive session on Tuesday, in the wake of Monday's dramatic sell-off, amid increasing nerves about the health of the global economy.

Crude for October delivery settled at a three week low of $95.29 a barrel, down $1.33 on the New York Mercantile Exchange.

Nerves about the global business activity were shaken after US economic bellwether FedEx Corp slashed it profit forecast while markets also mulled reports that Saudi Arabia plans to maintain currently high oil output.

Spain's rising bond yields were also in focus. The nation successfully sold €4.6bn in short-term debt, however the yield on 10-year government bonds, which is a key measure of borrowing rates, again rose above 6%. Anything over this level is regarded as unsustainable.

Investors are also looking ahead to the week's inventories reports, which are expected to a bigger-than-expected increase in crude supplies.

Brent oil futures, the European benchmark, fell $1.99 to $111.80 per barrel.

Among precious metals gold eked out modest gains on Tuesday after a choppy session while platinum futures nursed steep losses on reports that striking South African miners will return to work.

Gold futures for December delivery added 60 cents to end at $1,771.20 an ounce on the Comex division of the New York Mercantile Exchange.

Platinum for October delivery declined $36.30 to close at $1,636.30 an ounce.



CJ

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