Oil prices slip on weak global economic outlook

World oil prices dropped today as traders worried over the Greek debt crisis, weak global economic outlook and a looming "fiscal cliff" in the United States -- which is the world's biggest oil consumer.

Traders said the market also pushed lower after the International Energy Agency estimated that the US would experience a major rebound in its oil production over the next 10 years.

In late afternoon London deals, Brent North Sea crude for delivery in December fell 31 cents to USD 109.09 a barrel.

New York's main contract, light sweet crude for December or West Texas Intermediate (WTI), shed 39 cents to USD 85.68 a barrel.

"Crude oil prices started the week on a consolidation mode, following further uncertainty from the eurozone and especially after last week's heavy sell-off," said Sucden analyst Myrto Sokou.

She added: "We expect further consolidation and thin trading conditions with low volatility until the dust in the eurozone settles."

Greece's debt crisis tops the agenda today when eurozone finance ministers discuss whether Athens has met conditions set by its international creditors to provide bailout funds so it can stay afloat and avert a disastrous default.

Greece's budget paves the way for the European Union, International Monetary Fund and the European Central Bank to unlock a 31.5 billion euro (USD 40 billion) instalment of bailout funds for Athens.

"Not much on the macro agenda today and (there are) primarily bearish winds blowing in the form of the theoretical Greek default, warnings of slowing German growth and US fiscal cliff worries," added SEB analyst Filip Peterson.

"Even though the (oil) market rarely reacts much to the long term IEA outlook, it definitely weighs that the organisation is getting increasingly optimistic with regards to US tight oil production."