(Agencies)
Updated: 2008-03-25 23:53

NEW YORK -- Oil futures stumbled Tuesday, falling below $100 a barrel after disappointing reports on home prices and consumer confidence raised new worries about the economy.

Pumps draw petroleum from oil wells in Signal Hill, California. World oil prices declined Monday due to expected slower growth in the United States, the world's largest economy, which will likely lessen oil demand, traders said. [Agencies]

Gas and diesel prices, meanwhile, retreated further from recent their record levels.

Consumer confidence fell much more than expected this month, according to the Conference Board. The decline increased the oil market's concerns that hesitant consumers would further weaken the economy and depress demand for fuel. Meanwhile, home prices as measured by the Standard & Poor's/Case-Shiller index fell by 11.4 percent in January.

The reports pressured stocks, which are often viewed by energy investors as a proxy for economic growth, and raised new questions about the severity of the economic downturn.

Light, sweet crude for May delivery fell $1.51 to $99.35 a barrel on the New York Mercantile Exchange.

In sending prices lower, investors shrugged off the dollar, which weakened against the euro. The dollar's protracted decline has been a big contributor to oil's march higher to nearly $112 in recent months. Many investors regard oil and other commodities as inflation hedges, and turn to such hard assets when the dollar is falling.

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