July crude oil prices were higher during the initial morning hours and registered a higher high in the process. Meanwhile, outside market sentiment seemed to back track after European service sector data continued to show contraction and in front of a G-7 conference call to discuss the European debt crisis. Equity markets in Europe and the US turned lower and the US dollar rallied against the Euro currency. The uncertainty and soft European economic data have weighed on global oil demand prospects. That tone was also echoed by the IEA earlier this morning, indicating that the recent downdraft in crude oil prices might indicate that 2012 global oil demand growth could be weaker than originally expected.