Oil prices fell this morning due to fears of another recession in the US, which slowed demand, the shutdown of offshore oil production in the Gulf of Mexico due to Tropical Storm Lee and an EU ban on Syrian oil.

US crude dropped $1 to stand at $85.45 while Brent crude fell by 88¢ to $112 a barrel.

The EU imposed a ban on purchases of Syrian oil unless the Syrian Government ended its five-month crackdown on dissent.

Elsewhere, the EU lifted sanctions on Libyan ports and oil firms; however, oil production is unlikely to occur soon as former president Muammar Gaddafi’s loyalist forces are refusing to give up their last stronghold – the town of Bani Walid.