Oil futures suffered steep losses on Wednesday. Oil for July delivery tumbled $4.84, or 4.9%, to $94.57 a barrel.
The dollar rallied more than 1% against the euro, after European officials failed to come up with an agreement to deal with Greece’s debt situation. Oil tends to fall as the dollar rises because oil is priced in dollars and becomes more expensive for investors holding foreign currencies as the dollar gets stronger.
Europe’s debt crisis dominated investors’ attention, as media reports said Greek Prime Minister George Papandreou has offered to step down from his post.
Oil had risen as high as $99.95 earlier, backed by a deeper drop in oil inventories, after a weak start following a round of data showing a slowdown in business activity in the U.S.
