Crude oil fell more than $2 on Thursday as the dollar gained, lessening demand for commodities and prompting profit taking sales.
The dollar rose more than 1 percent against a basket of major currencies after a U.S. weekly report showed unemployment claims fell unexpectedly causing investors to sell futures.
In Europe, business confidence in Germany and France slumped in April helping the dollar rally against the euro. On Tuesday the euro traded at $1.6019 its highest record since the currency was launched but this morning the euro fell to $1.5708 in New York.
Crude futures prices fell $2.45, or 2.07 percent to $115.85 a barrel on the New York Mercantile Exchange by 3:23 p.m. on Thursday. Oil rose as high as $119.90 a barrel on April 22 on the falling dollar and supply disruptions from Nigeria and a Scotland refinery.
In Scotland, unions and owners of a Grangemouth refinery are still in talks to solve a pension dispute. Meanwhile the refinery is under threat of an escalated strike this weekend, which could force it to shut down. In Nigeria, rebel attacks have shut production at a Royal Dutch Shell refinery.
Brent crude fell $1.90, or 1.64 percent to $114.27 a barrel on the ICE Futures Exchange in London.