NEW YORKâCrude-oil futures were modestly lower as worries about Europe weigh on the market.
Traders are concerned about how new governments in Italy and Greece will tackle fiscal austerity and sovereign debt weigh on the market. The fears helped depress the euro, lifting the dollar against the common currency. Gains in the dollar, in turn, discouraged buyers from stepping in as buyers in dollar-denominated oil futures.
Front-month crude oil futures in the U.S. climbed to an overnight high of $99.69 a barrel -- the highest level since July 26 -- but didn't find enough follow-through strength to break the century mark, last hit on the same date.
Light, sweet crude oil for December delivery on the New York Mercantile Exchange was 81 cents lower at $98.18 a barrel. ICE Brent crude for December was $1.01 lower, at $113.15 a barrel.
Major industrial economies are showing a slowdown in economic growth, the Organization for Economic Cooperation and Development said on Monday, underscoring worries about the potential for a recession in Europe. The Paris-based think tank said its leading indicator of economic activity among its 34-nation members, mostly in Europe, fell to 100.4 in September from 100.9 in August.
That serves as further reminder of the recent steep fall-off in oil demand from the world's top economies, a factor that may cap further price gains.
"We are extremely overbought," said Tom Bentz, director at BNP Paribas Prime Brokerage Inc., of the 7.4% rise in crude since the start of the month. "I don't think anyone is convinced that we are 100% out of the woods in Europe."
Heating oil futures prices trimmed earlier gains, but were still near six-month highs and were the strongest performer in the energy futures complex. U.S. inventories diesel and heating oil have dropped to a three-year low, while demand is at a 3-1/2-year high. Strong demand from China and other emerging economies is pushing up prices for the fuel around the world.
