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Greek woes add to pressure on oil

Oil prices - US demand shows signs of weakening
Oil prices - US demand shows signs of weakening

Oil prices slipped this evening as concerns about Greece's deteriorating financial situation curbed the appetite for risker investments across global markets.

The euro dropped to near one-year lows against the US dollar. A stronger dollar usually makes oil more expensive for holders of other currencies, affecting demand.

US crude dropped almost $2 per barrel to a low of $81.73 before recovering to trade at $83.10, down 58 cents. London Brent was down 45 cents at $85.25 a barrel.

US crude oil inventories rose unexpectedly last week, the US Energy Information Administration said on Wednesday, a signal of weaker US demand.

European oil industry data added to the picture with figures from industry monitor Euroilstock showing oil refinery output in 16 European countries fell by 10.1% in March from the same month last year.