U.S. crude oil futures ended at their lowest level in more than two weeks on Monday as Wall Street tumbled amid worries about global economic recovery. NYMEX natural gas futures settled lower on Monday, with a sharp slide in crude and fading storm concerns dragging the front month contract to a seven-year spot chart low despite near record heat in the Northeast.

IN FOCUS:

Hurricane Bill, the first hurricane of the 2009 Atlantic season, revved up quickly as it headed towards Bermuda on Monday, while the remnants of Tropical Storm Ana posed a waning threat to the U.S. Gulf oil patch.

Tropical Storm Claudette hit the U.S. Gulf of Mexico coast near Fort Walton Beach in the Florida panhandle early on Monday and quickly weakened to a tropical depression as it moved over southern Alabama.

U.S. crude inventories likely rose 1.0 million barrels last week, a poll of analysts showed on Monday ahead of industry data. Distillate stocks were forecast to have climbed 400,000 barrels and gasoline stocks to have declined 1.4 million barrels, the poll showed.

AccuWeather.com expects temperatures in the Northeast, a key gas consuming region, to test record highs in the low-90s Fahrenheit area early in the week before moderating to near normal in the low- to mid-80s later in the week.

FUNDAMENTAL OUTLOOK:

Crude oil is likely to follow equity indices and other commodity complexes. We expect it to inch up later in the session. The fall in dollar following strong economic data may also support an upside in crude oil.