SINGAPORE: Brent crude futures fell towards $111 a barrel on Tuesday as Greece's political and economic turmoil deepened and worries that the debt-laden country could leave the euro zone sparked a sell-off in dollar-denominated commodities.
Brent prices slid for a fourth consecutive day, hammered also by fears of a slowdown in the global economy with European data due on Tuesday expected to show the region slipping back into a second recession in just three years.
China's decision to loosen monetary policy over the weekend also fed fears that the global economy is suffering as the crisis worsens, causing investors to flee from riskier assets and weighing on copper, gold and the euro.
Brent crude slipped 40 cents to $111.17 a barrel by 0643 GMT after sliding to $110.04 on Monday, its lowest intraday price since Jan. 25.
US crude dropped 40 cents to $94.38 a barrel, after falling to $93.65 on Monday, the weakest intraday price since December 19.
"The risk-off turn in the market over the last week is due to a re-evaluation of global growth, particularly in China and Europe, which has been weighing on the market," said Natalie Robertson, an analyst at ANZ.
"With the US dollar showing strength, it's weighing on the commodity markets with investors moving into traditional safe-haven assets, so it's not looking good for oil."
The euro fell to a four-month low against the dollar on Tuesday, adding to the strength of the dollar index. A stronger US currency can pressure dollar-denominated commodities by making them more expensive for consumers using other currencies.
Strong production in Germany could not make up for a slump across the rest of the euro zone in March with output at factories falling and signalling an oncoming recession may not be as mild as policymakers hope.
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