NEW YORK—World oil prices sank under $75 per barrel Monday, as traders cashed in gains and awaited a slew of economic data and the start of the US corporate earnings season.
New York's main contract, light sweet crude for delivery in August, fell by $1.14 to end the day at $74.95 a barrel.
In London, Brent North Sea crude for August slid 1.05 cents to settle at $74.37 a barrel.
"We are worried again about the economy," said Bart Melek of BMO Capital Markets, citing concerns that US retail sales will slow down.
"Investors continue to worry about Europe fiscal position, so that helped the dollar... a stronger dollar plays against commodities."
Statistics on US retail sales are expected on Wednesday, with most analysts predicting a slightly worse snapshot of the sector.
It was the first fall in oil prices after three sessions that saw prices rise a total of six percent.
"Crude oil prices gave back some of the recent gains and retreated... as investors remained cautious and were prompted to some profit-taking ahead of the US corporate earnings season," said Sucden analyst Myrto Sokou.
Aluminum giant Alcoa unofficially kicks off the quarterly earnings season after the US stock markets close Monday. Results are expected in the coming days from Google, General Electric, Citigroup, Bank of America, Intel and JPMorgan Chase.
Oil had crept above $76 in early Asian deals on Monday as buoyant stock markets and expectations of healthy corporate earnings in the United States pushed up prices.
However, traders opted to cash in gains as the market was "getting ahead of itself," agreed Victor Shum, an analyst with energy consultancy Purvin and Gertz.
"It's primarily people selling to lock in profits... Oil is getting a little too strong and over-bought and so there's selling among traders."
Shum said that prices would probably hover around $75 in the near term.
"The question is whether there is enough confidence in the market for oil prices to hold above $75," he told AFP.
"I think that given the uneven economic recovery around the world, pricing in the mid-$70 is probably a more stable value."
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