Brent crude fell $1.09 to $107 today because of the worsening euro zone crisis, as Spain slipped into recession, pushing the euro to a four-month low.

US crude was down 65 cents to $91.91, as weak US economic data raised fears about a fragile recovery and of a global slowdown which could dent oil demands, reported Reuters.

New claims for US jobless benefits last week held at levels suggesting sluggish growth in hiring and factory activity in May.

Investors are now eyeing the G8 summit, which will take place this weekend, where leaders will discuss the economic situation.