•The global crude oil futures complex continued to fall Tuesday with both ICE Brent and NYMEX WTI contracts losing $3/barrel in early European trading. The bearish mood comes amid news of a US consumer spending slowdown and fresh reports of an increase in oil production, but the speed of the downturn has been largely attributable to sell stops being activated at key support levels, market sources said.

•The early morning selloff was exacerbated by stop-loss trades, according to a European-based broker. "Fundamentally we have seen a lack of demand for oil and reports of increased oil production, however, people are putting in sell stops and this is exacerbating the move," he said.

•In currency markets, the ICE US Dollar Index reached a six-week high at 73.828 in earlier European trading, ahead of the US Federal Reserve's interest rate announcement later in the day. Rate are expected to remain at 2%.

Updated: August 5, 2008