Oil Below $71 As Stocks Sink, Recovery Questioned

VIENNA

Oil prices fell to near $71 a barrel Monday as China's stock market tumbled and commodities investors questioned whether the U.S. economy can recover strongly in the second half.

Sinking Asian stock markets were led by a 6.7 percent fall in China's benchmark. Oil investors often look to stock markets as a barometer of sentiment about the economy.

German and French markets were also down, and Wall Street appeared set for a lower open. The London Stock Exchange was closed for a public holiday.

Benchmark crude for October delivery was down $1.81 to $70.93 a barrel in afternoon European electronic trading on the New York Mercantile Exchange. The contract Friday added 25 cents to settle at $72.74 after tumbling from near $75 earlier in the week.

Oil has traded near $70 a barrel for most of the last few months as investors struggle to gauge how robust the U.S. recovery will be. Crude has tried and failed several times, including last week, to break through the $75 level.

"Oil looks a little tired," said Christoffer Moltke-Leth, head of sales for Saxo Capital Markets in Singapore. "We're seeing an economic recovery, but that's already been built into the price."

The U.S. economy will likely have to grow at least 2 percent in the third quarter to enthuse traders and push the oil price past $75, Moltke-Leth said.

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