Oil prices fell this evening after a surprise slip in Britain's fourth-quarter economic growth and after India raised interest rates in an attempt to cool inflation, fuelling concerns about the rate of economic recovery and high commodity costs. US crude fell $1.46 to $86.41 a barrel, while London Brent dropped $1.07 to $95.54.
Britain's economy shrank by 0.5% in the fourth quarter of 2010 after December's heavy snow took a harsher toll than economists had forecast.
Also weighing on oil, India's central bank raised interest rates to clamp down on inflation and warned of higher food prices unless steps are taken to boost stocks.
High US crude inventories, especially at the Cushing, Oklahoma, delivery point for the US crude contract, have helped keep US crude prices below Brent.
US crude oil inventories were expected to have risen last week as imports increased. A report on stockpiles from the US Energy Information Administration is due on Wednesday afternoon.
