LONDON (Dow Jones)--Brent crude futures fell more than $2 a barrel Monday morning on a stronger dollar and concerns about whether the Greek parliament would approve unpopular measures to tackle the country's debt crisis.
Worries about the health of the U.S. and European economies, as well as the continuing effect of the International Energy Agency's release of oil stocks last week also put pressure on crude prices, said Thina Saltvedt, senior oil market analyst at Nordea Bank Norge.
"There are more negative news than we had for a long time," she said.
At 0755 GMT, the August Brent contract on London's ICE futures exchange was $1.88, or 1.8%, down at $103.24 a barrel. Earlier, it fell as low as $102.28 a barrel.
The August contract on the New York Mercantile Exchange was trading down 76 cents, or 0.8%, at $90.40 a barrel.
"The fact that crude prices started the week under pressure...suggests the bearish stance is favored," London Capital Group said in a research note.
The Greek parliament will vote later this week on a hugely unpopular austerity package. The European Union and International Monetary Fund will refuse to provide new loans without the plan being approved and market participants worry that if Greece fails to avoid bankruptcy, it could hurt the global economic recovery and demand for oil.
The ICE's gasoil contract for July delivery was down $11.25, or 1.3%, at $863.25 a metric ton, while Nymex gasoline for July delivery was 274 points lower at $2.7492 a gallon.
-By Konstantin Rozhnov, Dow Jones Newswires; +44 207 842 9004; konstantin.rozhnov@dowjones.com
