Crude prices slipped further to a new low in four months as investors remained concerned about economic recovery amid Greek debt crisis.
Although there appeared to be chances for a new bailout package for Greece, and the euro also rallied for the second straight day, investors remained pessimistic about the global economic recovery.
International Monetary Fund cut in its estimate for U.S. gross domestic product to 2.5 percent growth this year and 2.7 percent in 2012.
"Many people said the oil would rise, as the euro went up, the stocks and the gold went up, but it fell. The investors have fears about the economic recession," said Raymond Carbone, the senior oil trader in the New York Mercantile Exchange. According to him, the Saudi production increase also weighed on the crude prices.
Carbone predicted the New York crude benchmark would further fall to the range of 84 dollars to 88 dollars in the near term.
Light, sweet crude for July delivery sharply fell 1.94 dollars, or 2.04 percent to settle at 93.01 dollars a barrel on the New York Mercantile Exchange. For this week, it fell 6.28 dollars, or 6.32 percent.
In London, Brent crude for August delivery also dropped and last traded around 113 dollars a barrel.
