Oil prices fell this evening after weak euro zone data showed contracting industrial output and highlighted the possibility of a recession as Europe struggles to contain its sovereign debt crisis.
The euro fell against the dollar, strengthening the dollar index and as a result making oil more expensive for holders of other currencies.
Brent crude fell $1.83 to $112.33 a barrel, while US crude fell $1.10 to $97.89. Brent's premium to US crude narrowed, dropping below $15 a barrel, continuing its retreat from a $19.91 peak on November 8.
Trading volumes for Brent and US crude were below recent levels. US heating oil futures managed to stay flat, supported by seasonal expectations for approaching winter demand and exports, while petrol futures tumbled on weak demand and expected imports.
