Oil prices tumble as Americans cut spending

By Xinhua,

New York : Oil prices tumbled Monday as Americans cut spending amid grim economic environment.

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According to a US government report, consumer spending fell for a record sixth straight month in December as recession-battered households worried about increasing number of layoffs reduced purchases.

Construction spending dropped by 1.4 percent in December, slightly worse than the 1.2 percent decline economists expected.

Light, sweet crude for March delivery fell by $1.60 to settle at $40.08 a barrel on the New York Mercantile Exchange.

In London, the March Brent contract was down $2.06 to settle at $43.82 on the ICE Futures exchange.