Oil prices fell Monday, briefly hitting their lowest level in nearly two months on worries about the global economy. Light sweet crude oil for August delivery was down almost 40 cents to around $59.50 a barrel in mid-afternoon trading on the New York Mercantile Exchange, after earlier falling to $58.32, the lowest since May 18. The losses add to last week's 11 percent decline—the market's biggest weekly drop since late January—sparked by worries another economic downturn could delay a rebound in oil demand. Analysts said prices were expected to drop this week because of weak economic fundamentals, and prices are likely to fall to $55 or even toward $50 a barrel, they said. Adding downward pressure to oil prices, U.S. regulators have said they are planning to move aggressively to limit excessive speculation in energy and commodity markets. Recent oil losses reverse a 40 percent spike last quarter, when investors ignored weak fundamentals and bet on quick global economic recovery.
