Brent crude oil dipped to $117.53 at 11:30 GMT on Friday after weak eurozone data signaled that the region's economy had a long road to recovery ahead.
GDP data from the euro zone showed an economic contraction of 2.3 percent in the fourth quarter of 2012. The bloc's economy shrank at its quickest pace since the height of the global economic crisis in late 2009.
Credit: Reuters/Kim Kyung-Hoon
Pumps are seen at a gas station in Tokyo June 24, 2011.
The figures added fuel to speculation that the euro's recent strength is unrelated to the region's real economy. Although the euro has strengthened on improving sentiment; unemployment, exports and GDP have all fallen which indicates that the eurozone is still deep in recession.
The GDP report on Thursday presented troubling figures for some of the eurozone's largest economies, including northern powerhouse economy, Germany. Both German and French GDP fell at a faster rate than predicted and proved that the problems of southern countries like Spain and Italy have infected the entire EU.
Despite the eurozone's troubling GDP, CNBC, reported that geopolitical worries kept a floor under prices as tension in the Middle East continued to escalate in both Syria and Iran.
Talks between the West and Iran proved fruitless after United Nations inspectors returned from Iran on Thursday without any real progress toward resuming nuclear investigation in Tehran. UN officials were unable to secure a date for further meetings and the lack of progress toward diplomacy has many worried about the possibility of a war in the future.
The Syrian civil war continued to pose a threat to crude supply as unrest in the nation escalated along with the death toll. The uprising, which has continued for more than a year, is threatening to spill over Syria's borders and destabilize the entire region.
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