Oil prices retreated on Friday as American savings rate hit a 15-year high, spurring concern over future U.S. consumer spending.
The Commerce Department said in its report on Friday that the U.S. consumer spending rose in May, first seen in three months, due to a 1.4-percent income jump under the Obama administration's stimulus plan. However, climbing earnings also drove the savings rate to a 15-year high, which made investors think the consumer spending will slow down in the future.
Meanwhile, losses on equities markets and profit-taking by investors also encouraged selling in the commodities markets.
Light, sweet crude for August delivery dropped 1.07 dollars, or1.5 percent, to settle at 69.16 dollars a barrel on the New York Mercantile Exchange. London Brent for August delivery slipped 92 cents to 68.86 dollars a barrel on the ICE Futures exchange.