Oil prices fell today as concerns about the euro zone sovereign debt crisis sent investors out of commodities and into safer havens.
The Reuters-Jefferies CRB index, a global benchmark for commodities, fell 1% and equities fell as the dollar surged to a two-month high against the euro as traders weighed heightened risks in Spain and Greece and fresh concerns over Italy.
Early pressure on oil prices came from data showing China's factories expanded at their slowest pace in ten months, adding to evidence that the economy is moderating as a tighter policy starts to bite.
Brent crude for July delivery fell $2.35 to $110.04 a barrel by 5.30pm, after falling as low as $108.58 and dipping below the 100-day moving average of $110.45.
US crude dropped $2.50 to $97.60 a barrel, hitting a low of $96.37 and again pushing below the 100-day moving average early.
Investors eyeing support above the $94.63 low for May and the 200-day moving average of $90.05.
Volumes for US crude were light, down 59% below the 30-day moving average just after 5pm and lagging Brent levels.
Brent volumes trailed the 30-day average by 37%.
