Oil fell more than $2 per barrel on Monday more after a report of the U.S. Labor department raised concerns that the world's top oil consumer may fall into an economic recession.
U.S. oil CLc1 settled down $2.82 to $95.09 per barrel. Brent crude LCOc1 was down $2.40 at $94.39 .
Concerns about the U.S. economy are putting pressure on oil prices.
The U.S. government said last Friday the unemployment rate was up to 5 percent in December, a figure that surpassed the expectations of analysts who expected a rate of 4.8 percent. In addition, the Labor Department announced that employers created just 18,000 jobs last month, less than the 70,000 analysts had expected.
Furthermore, Europe recorded its biggest economic slump in sentiment in almost two years this December. Recent reports indicate that European expansion on services and manufacturing industries is slowing. The continent consumes almost one fifth of the production of oil worldwide.
Earlier on Monday, oil futures had climbed as high as $98.40 as CNN showed broadcast a military incident between U.S. and Iranian ships on the Strait of Hormuz. Almost a quarter of the world's oil flows through the region. Five vessels from Iran's Revolutionary Guard threatened to open fire on three U.S. Navy ships. A Pentagon official said that U.S. forces were on the verge of firing on the Iranian ships when they turned away.