SINGAPORE: Oil fell by more than $1 on Monday as the dollar strengthened and investors shunned commodity risk because of Europe's deepening sovereign debt crisis, while economic gloom dampened the outlook for energy use.
Brent crude fell as much as $1.12 to $111.65 a barrel and was down by 0.8 percent at $111.90 by 0414 GMT, while U.S. crude slid $1.08 to $86.16. The dollar rose about 0.4 percent against a basket of currencies.
Risk aversion erased about 3 percent of Brent's value in the previous two sessions on speculation Greece would default, while G7 finance ministers pledged a coordinated response on Friday to the global economic slowdown, but offered no specific steps and differed in emphasis on Europe's debt crisis.
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