Oil fell for a second day in New York as commodities plunged on concern that the global economy is weakening, reducing demand for raw materials.

Futures tumbled as much as 2.3 percent and gold dropped to a two-week low after a manufacturing index in the New York region contracted for a third straight month in October. The Federal Reserve Bank of New York’s general economic index missed analysts’ expectations. It rose to minus 6.2 in October. The median forecast called for a gain to minus 4. The figure was minus 10.4 in September, the lowest level since April 2009. The index covers New York, northern New Jersey and southern Connecticut.

The European Union tightened sanctions today on Iran in a bid to persuade Tehran to permit more international scrutiny of its nuclear program and avert a possible military conflict.

Crude oil for November delivery fell to $89.79, the lowest level since Oct. 9. Prices are down 8.8 percent this year.

Brent oil for November settlement slipped 68 cents, or 0.6 percent, to $113.94 a barrel on the London-based ICE Futures Europe exchange.

Gold fell the most in New York in more than three months amid concern that the global economy is slowing and as traders awaited the outcome of the tomorrow’s U.S. presidential debate.

In addition, negative connected with the situation in Europe because of the uncertainty of an appeal for international financial assistance of Spain and fears that the summit this week the European politicians will not be able to find solutions to the debt crisis.

The summit of political leaders of the European Union (EU) will be held October 18-19.

Against this background, the Chinese government published on Saturday data showing that China's exports to the EU dropped the fourth month in a row - by 10.7% in September.

October futures price of gold on the COMEX fell $ 23.70 today and now is 1733.20 an ounce.