LONDON -- Crude oil fell to its lowest price in more than three months on speculation that Europe's sovereign- debt crisis and rising supplies in the U.S. indicate that the demand recovery is losing momentum. Oil dropped for a fourth day as the euro traded near a 14- month low against the dollar, damping the investment appeal of commodities. Crude inventories at Cushing, Oklahoma, where New York-traded West Texas Intermediate oil is delivered, rose to a record high last week, according to the Energy Department. Crude oil for June delivery fell as much as US$1.68, or 2.3 percent, to US$72.72 a barrel, in electronic trading on the New York Mercantile Exchange. That's the lowest price since Feb 12. The contract was at US$72.95 at 11:35 a.m. London time, putting its decline this week at 2.9 percent. Thursday, it lost 1.7 percent to US$74.40, the lowest settlement since Feb. 12. Brent crude oil for June settlement, which expires Friday, was down US$2.01 at US$78.10 on the London-based ICE Futures Europe exchange. The more actively traded July Brent future was down US$1.65 a barrel at US$79.78. Oil has fallen more than 15 percent on the Nymex since it reached US$87.15 a barrel on May 3, a 19-month high, as the euro weakened against the dollar. The U.S. currency slipped to US$1.2457 against the euro at 11:37 a.m. in London, compared with US$1.2535 in New York Thursday. Oil may rise next week on speculation the dollar will drop against the euro as the European Union's bailout of almost US$1 trillion comes into effect, a Bloomberg News survey showed.

Source