High crude prices could send the global economy back into recession, said Fatih Birol, chief economist at the International Energy Agency.

Oil surged to $147 in July 2008, pinching consumer spending just as the global financial crisis undermined investor confidence.

“My worry is that current oil prices are a major risk of the global economic recovery,” Birol said in a speech in Singapore.

“I’m very worried that we could see the same movie that we saw in 2008.”

The premium of Brent futures to US crude narrowed further to just over $17 a barrel, the lowest level since June 9, as losses on the London contract outpaced those for West Texas Intermediate.

Brent August crude tumbled $1.23 to $110.46 a barrel at 1:17 p.m. EDT (1717 GMT), off earlier highs of $113.10 a barrel.

US crude for July delivery fell 35 cents to $92.91 a barrel ahead of the contract's expiry, while the more heavily traded August contract lost 37 cents to trade at $92.91 a barrel.

Total trading volumes for the Brent contract outpaced those in US crude, with 415,000 contracts traded, about 14 percent below the 30-day average. US crude volumes were about 46 percent below the 30-day average, at around 393,000 lots traded.

Brent crude reversed after failing to match Monday's intra-day high and hitting resistance at the 50 percent Fibonacci retracement point of the price gains achieved between May and June.

Some analysts downplayed the importance of Greece’s debt crisis on oil.

“The oil market will only see a major impact if the crisis spreads to larger countries in Europe,” J. P. Morgan said in a report.

“The main path through which Greece impacts oil in the short-term is via the euro/US dollar exchange rate.”

Oil tends to rise when the dollar drops as a cheaper US currency makes commodities such as crude cheaper for investors with other currencies. When the dollar gains, oil tends to fall.