NEW YORK ( TheStreet) -- Crude oil prices settled in negative territory Tuesday as worries about a weakening economic recovery in the U.S. and troubles in Europe took precedence over the passage of a debt ceiling deal that would help the country avert a default.
West Texas Intermediate light sweet crude oil for September delivery shed $1.10 to settle at $93.79 a barrel, while Brent crude oil futures for September delivery fell 25 cents to $116.56.
"After all of the furor and debate surrounding the debt ceiling in the last few weeks, the passing of a bill in Congress last night with one day to spare has been met by a whimper from the crude complex, as economic concerns dominate sentiment instead," said Summit Energy analyst Matt Smith.The Commerce Department reported on Tuesday that personal spending decreased for the first time since September 2009, dampening hopes for robust growth going into the summer. The Commerce Department reported that personal spending for June decreased by 0.2%, after a revised 0.1% increase in May. This comes on the heels of poor manufacturing data released by both the U.S. and China the day before. Meanwhile, European debt woes were back in the spotlight, with Italy and Spain's weakened economies back in focus after President Obama signed legislation passed by the Senate on Tuesday afternoon by a vote of 74 to 26 to increase the nation's $14.3 trillion debt ceiling. The House of Representatives had approved the same bill Monday night 269 to 161. The American Petroleum Institute is expected to release its weekly crude oil inventory report at 4:30 p.m. ET on Tuesday, and the Energy Information Administration is scheduled to release its report at 10:30 a.m. ET Wednesday. A 2 million-barrel build is expected, according to analysts polled by Platts. "Traders will try to find solace in this week's
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