Oil Futures fall on concern summit may not resolve Europe debt crisis

LONDON: Crude oil fell on Wednesday, snapping three days of gains on concern that the European Union’s debt crisis may not be resolved by the group’s summit this week.

Crude retreated as much as 0.4% as the dollar gained against the euro after a German government official said Chancellor Angela Merkel’s government is more pessimistic of the outcome of an EU leaders’ summit in Brussels beginning Thursday. The dollar rose as much as 0.3% against the euro, making it more expensive for holders of the European currency to purchase dollarcommodities such as oil.

“Investors are not convinced that the upcoming EU summit will address the sovereign debt issue and they feel that the struggling continent will show a drop in demand,” said Glen Ward, head of retail derivatives at London Capital Group.

Crude for January delivery on the New York Mercantile Exchange was at $101.03 a barrel, down 25 cents, at 12:54 pm London time after falling as much as 42 cents to $100.86. On Tuesday, the contract added 29 cents to $101.28, the highest settlement since November 16. Prices are up 11% this year after climbing 15% in 2010.