The price of oil fell today, as traders responded cautiously to data showing that a stubborn recession in the euro zone has ended.
Benchmark crude for September delivery was down 67 cents to $106.16 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 72 cents to close at $106.83 yesterday.
Brent crude, traded on the ICE Futures exchange in London, fell 64 cents to $109.18 a barrel
The 17 countriess that use the euro saw their collective economic output grow by 0.3% in the three months from April to June from the previous quarter, according to data today.
That is the first quarterly growth rate since the euro zone slipped into recession in the final quarter of 2011.
But the result came largely on the back of improving conditions in Germany and France, which had already escaped the most grueling effects of the recession.
A relatively stronger dollar also worked against oil prices. Oil is traded in dollars and becomes a less attractive investment for holders of other currencies when the value of the greenback rises.
In recent days, the dollar has posted gains against the Japanese yen, the Swiss franc, and the currencies of commodity-driven countries including Australia and Canada. That could partly explain the falling price of oil in the face of the brighter economic data from Europe and the US.
