falling the Oil for the third consecutive day

Oil fell for the third consecutive day, dropping to a minimum of two weeks on speculation government measures to cool economic growth in Asia can reduce fuel consumption and debt crisis in Europe will reduce demand for commodities .

The futures fell after the Bank of Korea raised interest rates for the second time this year and the China Securities Journal said the Chinese government will take further steps to control price increases. European shares fell on concern of Spain will struggle to cope with their debt. One morning the Energy Department report may show U.S. Crude inventories fell last week.

"The European debt problems have resurfaced, scare investors from risky assets like oil," said Thorbjoern Bak Jensen, an analyst with Global Risk Management in Middelfart, Denmark. "We expect oil to continue operating in the range of between $ 81 and $ 90."

The December crude contract, the New York Mercantile Exchange dropped as much as 95 cents, or 1.1 percent, to $ 83.91 a barrel, the lowest price since Nov. 3. The contract was at $ 83.93 at 10:39 am London time. Brent crude oil for January settlement lost 75 cents, or 0.9 percent, to $ 86.01 a barrel on the ICE Futures Europe exchange in London.

The Bank of Korea increased interest rates after inflation rose last central bank's ceiling. China will introduce measures to control rising food prices, the China Securities Journal, citing an unidentified person. The central bank raised lending rates in October for the first time since 2007.

European Debt

Crude also dropped the dollar index, which tracks the currency against six U.S. trading partners, rose for a second day, limiting the attractiveness of oil investment.

Concerns that the banking crisis is spreading from Ireland sent the dollar to a maximum of six weeks of $ 1.3561 against the euro. European currency was little changed at $ 1.3610 after Irish Prime Minister Brian Cowen said his willingness to take action to help banks in the nation.

The benchmark Stoxx Europe 600 Index fell 1.2 percent to 269.17 by 10:41 am in London, reversing yesterday's 0.8 percent gain, as more than six companies fell for every one rose.

"There's still a feeling of pessimism out there," said David Taylor, a market analyst at CMC Markets Ltd. in Sydney, in a note today. There is "concern over Ireland's sovereign debt, concerns about rising rates in the future in China and the health of the U.S. economy."

One morning the Energy Department report may show U.S. Crude stocks fell 700,000 barrels last week at 364.9 million barrels, according to the median estimate of nine analysts surveyed by us. fuel supplies also fell, according to the survey.