US crude prices fell by 8¢ to stand at $85.62 as worries about the economic growth outlook intensify.

Brent crude remained steady at $109.35 a barrel after two days of losses fuelled by worries that a default by Greece will destabilise the global financial system and affect oil consumption.

The downgrade of Italy by credit rating agency Standard and Poor’s confirmed fears about the debt crisis spreading across Europe, reports Reuters.

The US Federal Reserve will begin a two-day meeting starting tomorrow as the world’s biggest economy seeks measures to bolster growth.