Crude oil futures fell on Tuesday in reaction to weak US economic outlook. Moreover, Greece’s debt situation further escalated the uncertainty among investors. Keith Springer from Springer Financial Advisors commented, “Oil is the blood that sustains the heart of economic growth, slower economic growth means less aggregate demand leading to less production of goods and therefore a reduced use of oil.”

Crude oil futures contract for November delivery declined 2.5 percent or $1.94 to settle at $75.67 per barrel on the New York Mercantile Exchange. This also happens to be the lowest oil prices since September 23^rd, 2010.

Investors were pessimistic on forecasts of mild recession in the fourth quarter of 2011 and first quarter of 2012 by Goldman Sachs. Further, Standard & Poor’s Rating Services also forecasted 40 percent chances of recession in Western Europe in next year.

London’s Brent crude oil also dropped $1.92 to settle at $99.79 per barrel on ICE Futures exchange on Tuesday. This happens to lowest for Brent crude since February 7^th, 2011.  Among other commodities heating oil futures contract for November delivery fell $0.03 to settle at $2.72 per gallon while gasoline futures contract for November delivery fell $0.02 to $2.49 per gallon.

However, natural gas futures contract for November delivery slightly gained $0.02 to $3.64 per million British thermal units.