US crude oil falls $1 on euro zone gloom

LONDON: US crude oil futures fell more than $1 a barrel on Monday on deepening concern over the prospects for the euro zone, despite a deal last week among European governments to work towards closer fiscal union.

By 0915 GMT, the benchmark January light, sweet crude oil contract was trading around $98.35, down $1.06 per barrel, having reached an intra-day low of $98.30.

Investors worry the long-term EU steps may not be sufficient to avert a short-term funding crisis for one or more of the euro zone's most indebted economies. Tight budget control is also likely to imply lower economic growth in the medium term, economists say.