Oil prices fall as financial turmoil goes global

Traders were also watching currency movements as investors tend to buy commodities like oil to defend against dollar weakness and a hedge against inflation, but sell crude as the U.S. currency strengthens.

The 15-nation euro fell to $1.353 in Monday trading from $1.3774 late Friday.

"With Europe starting to be in panic mode, the dollar is gaining by default of the euro weakening and this continues to be a negative factor for commodities," said Olivier Jakob of Petromatrix in Switzerland.

In other Nymex trading, heating oil futures fell 18.8 cents to settle at $2.474 a gallon, while gasoline futures lost 16.92 cents to settle at $2.0591 a gallon. Natural gas futures fell 52.3 cents to settle at $6.835 per 1,000 cubic feet.

In London, November Brent crude fell $6.57 to settle at $83.68 a barrel on the ICE Futures exchange.

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Associated Press Writers Pablo Gorondi in Budapest, Hungary and Alex Kennedy in Singapore contributed to this report.