Macroeconomic concerns drag on oil

Crude oil prices retreated heavily in early Tuesday trading on signs of a slowdown in the British economy and worries over the pace of global jobs growth.

Brent crude oil prices fell more than 1.5 percent from the previous close to $65.15 to start the trading day Tuesday. Brent started the month just above $66 per barrel.

Crude oil prices have recovered from early 2015 lows below the $50 per barrel mark on signs the global marketplace was starting to take up some of the excess supply. A weak recovery in the United States, however, has overshadowed some of the stability seen in Asia.

West Texas Intermediate, the U.S. benchmark, dropped 1.8 percent to $58.33, down about $1 per barrel from May 1.

While the broader European economy is showing slow, but steady, growth, the Bank of England said the consumer price inflation fell below zero for the first time since record-keeping of that type began in 1996.

Bank of England Gov. Mark Carney said low oil prices meant low fuel prices at the same time as the sterling appreciates. These factors explain most of the shortfall in inflation, though Carney said the situation should reverse through the second half of the year.

The International Labor Organization, meanwhile, said any global economic growth was largely uneven. In most reporting countries, ILO said part-time jobs outpaced gains in full-time jobs in the four years ending in 2013.

"The shift we're seeing from the traditional employment relationship to more non-standard forms of employment is in many cases associated with the rise in inequality and poverty rates in many countries," ILO Director-General Guy Ryder said in a statement. "What's more, these trends risk perpetuating the vicious circle of weak global demand and slow job creation that has characterized the global economy and many labor markets throughout the post-crisis period."