US crude prices fell by $1.29 to stand at $86.67 a barrel today as the dollar strengthened.

Inventories also slid and markets are seeking safer assets ahead of the US Federal Reserve meeting on 21 September 2011.

Brent crude slipped by 85¢ to $111.37 as Europe failed to solve issues concerning the eurozone debt crisis, which increased concerns about crude demand.

The release of US housing data today may also affect oil prices, reports Reuters.