Oil hits 5-month low of $94 per barrel
Benchmark oil for June delivery was down 44 cents at $94.34 a barrel, the lowest since December, at midday Singapore time in electronic trading on the New York Mercantile Exchange.
The contract fell $1.35 to settle at $94.78 in New York yesterday.
Brent crude for July delivery was down 45 cents at $110.55 per barrel in London.
Crude has sunk about 11 per cent from $106 earlier this month amid signs of slowing economic activity in the world's two biggest oil consumers, the US and China.
This week, traders are worrying that Greece's inability to form a government after recent elections could worsen the country's debt crisis and deep recession, and undermine confidence throughout Europe.
"Greece's struggle to form a new government has moved to centre stage," energy trader and consultant Ritterbusch and Associates said in a report. "The possibility of a significant economic slowdown in European economic activity is prompting contagion fears."
Oil investors are also taking their cues from global stock markets, which have slumped so far this month. The Dow Jones industrial average fell 1 per cent yesterday and most Asian stock markets were down today.