Brent crude futures slipped under $113 (Dh415) a barrel yesterday after comments by French President Nicolas Sarkozy that a prompt solution for Greece was needed.
But prices remained on course for a 5 per cent drop last week in the biggest fall since early May as risk aversion weighed.
The euro inched up from earlier losses after Germany and France pledged to solve the Eurozone debt crisis as soon as possible, lifting the currency from near three-week lows. Brent crude for August tumbled $2.97 per barrel to a low of $111.05 but later pared some losses to trade at $112.92 by 1334 GMT. US benchmark crude, known as West Texas Intermediate or WTI, retreated $2.83 to a low of $91.12 a barrel before retracing some losses to $93.50 a barrel by the same time.
Sarkozy said "there was no time to lose" on agreeing on a programme for Greece, suggesting a deal needed to be reached in July at the latest. "Greece will weigh into prices next week, it will be an underlying concern for the weeks to come. It's like watching Lehman in 2008; it's a problem but we don't have the solution," Olivier Jakob from consultants Petromatrix said.
"In the climate of a greater perception of financial markets and economic risks and given the present strength of the US dollar, the price correction is likely to continue," Commerzbank analysts said in a note.
From / Gulf News