Forexpros - Crude oil futures dropped on weak U.S. economic numbers depite Nigerian supply fears and a broadly lower U.S. dollar .   

On the New York Mercantile Exchange, light sweet crude futures for February settlement traded at USD98.86 a barrel during mid U.S. trade plunging 2.00%%%.   

It earlier climbed to USD102.95, a two day high, prior to selling off.   

Weakness in the U.S. dollar did little to firm up oil prices. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.66% to trade at 81.04.  

Dollar weakness generally lifts commodity prices, as it increases their appeal as an alternative asset and makes dollar priced commodities less expensive for holders of other currencies.   

In the U.S., a report indicated that more Americans filed for unemployment benefits last week than forecasted added to speculation that the U.S. recovery may be slowing adding to the bearish oil environment. 

U.S. retail sales in December also failed to meet forecasts increasing the oil bearish sentiment in the world's largest economy.     

Meanwhile, Iranian tensions are lessening as Greece, Italy and Spain are working to soften a U.K. led effort for a total ban on Iran imports. Foreign ministers are scheduled to meet on January, 23rd to discuss possible sanctions.  

Iran is the world's fourth largest producer of oil hence any sanction fears of disrupted supply added to oils recent bullish move.   

Tensions in Africa's largest oil producer, Nigeria, helped support prices earlier but was overshadowed by global slowdown concerns.   

Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery fell 1.34% to trade at USD110.74 a barrel, up USD11.88 on its U.S. Counterpart.   

This greater than USD10.00 spread is near historic highs. The two contracts traditionally trade within USD1.00 of each other.

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