Oil and gasoline futures plunged this week on concerns about the economy's health and as investors sold to lock in profits from last week's record-setting rally. At the pump, gas prices also extended their declines, falling 2 cents over the weekend to a national average of $2.838 a gallon, according to AAA and the Oil Price Information Service.

September oil fell more than $3 a barrel in Monday trading, and gas futures slid more than 10 cents to settle below $2 a gallon. Both contracts extended declines that began Friday after the government issued weaker-than-expected employment numbers.

That data added to the sentiment of a series of other government reports analysts say suggest the economy might be slowing.

"The weaker ... numbers are raising the prospect of softening U.S. commodity demand in general, and energy demand in particular," wrote MF Global U.K. Ltd. analyst Ed Meir in a research note.

But investors are also taking profits from the rally that sent oil prices to record levels last week, analysts said.

"It's all related to the (investment) funds dumping a portion of their long holdings," said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Ill.

Light, sweet crude for September delivery fell $3.42 to settle at $72.06 a barrel on the New York Mercantile Exchange. The contract has fallen more than $6 from the intraday price record of $78.77 it set last week.

September gasoline was off 10.31 cents to settle at $1.9259 on the Nymex.

Analysts were split, however, on whether the steep price declines of recent days portend the beginning of a sustained drop in energy prices.

Source: USAToday

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