US Cannot Confirm Rumors Gaddafi Shot; Oil Tumbles

Gold slipped and crude prices retreated sharply from 2 1/2 year highs on speculation Libyan leader Muammar Gaddafi had been shot but other markets did not immediately react to the unsubstantiated rumors.

Getty Images Libyan leader Muammar Gaddhafi

A senior official told NBC News that the U.S. government cannot confirm rumors circulating online that Gaddafi is dead, after traders cited the as reason for falling oil prices.

Crude prices plummeted near the end of the session, with U.S. light crude futures settling down 85 cents at $97.25. Crude futures were down more than $2 in post-settlement trade.

Brent futures in London also turned negative after posting gains that had pushed the North Sea contract up more than 7 percent to nearly $120 a barrel.

Traders also cited earlier reports that Saudi Arabia was in talks with European refiners to make up for the loss of Libyan crude and rumors of a possible release of U.S. emergency oil stockpiles as weighing on the futures market for crude.