Trading was also influenced by the looming end of the U.S. government's bond buying program later this month and the effect of China's inflation problems on the dollar. West Texas Intermediate light sweet crude oil for July delivery was falling $2.61 to $96.68 and the Brent Crude contract, earlier trading in positive territory, was down 98 cents to $117.80. The WTI is utilized in the U.S., while Brent crude, sourced in Europe, is bound for destinations all over the world. Currently, U.S. oil storage levels are full, with supplies at record highs, at the main delivery point in Cushing, Okla. This, as U.S. oil demand continues to be softer than that of emerging economies such as China, which has become the world's number one energy consumer. Brent crude prices was up earlier in the day on the buildup of risk premiums, given the greater ties of Brent oil to the overall macroeconomic risk picture -- such as those relating to tensions in the Middle East and North Africa. The turnaround later in the day could explained by a bout of risk aversion after Standard & Poor's slashed Greece's credit rating by three notches.
NEW YORK ( TheStreet) -- Texas light sweet crude oil prices continued falling Monday on concerns about slowing global demand and the impact of Saudi Arabia's oil output hike.