DALLAS (Bloomberg) -- Crude oil fell as European governments struggled to contain the region’s debt crisis, raising concern that it will slow the global economic recovery.

Futures dropped 1.1 percent as European Union finance ministers met on Saturday in Brussels to discuss sovereign debt. Total U.S. petroleum inventories climbed to the highest level in at least 20 years for the middle of May.
“The worry is that the European economy is going to drag the global economy into another recession,” Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, said in an interview. “Because 2008 is so fresh in everybody’s mind, everyone I talk to is just petrified.”
Crude oil for July delivery dropped 76 cents to settle at $70.04 a barrel on the New York Mercantile Exchange. The July contract has fallen for nine consecutive days, losing 13 percent since May 10. Prices slipped 7.1 percent this week.
Oil prices are down 20 percent from a 19-month high of $87.15 reached on May 3. Futures touched a record $147.27 on July 11, 2008.
Brent crude oil for July settlement slipped 16 cents to end the session at $71.68 a barrel on the ICE Futures Europe exchange in London. It was the lowest settlement since Feb. 8.
“Less than three weeks ago we were talking about how soon oil would reach $90,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “Now we are wondering if prices will soon touch $60. The main reason for this change has been the evolving perception of the European debt crisis.”
The euro has lost 12 percent against the dollar this year amid concern the Greek fiscal crisis will spread to other nations as governments work to push down deficits.