Oil fell as a stalemate between European policy makers and Greek bondholders over debt relief increased concern that the euro-zone debt crisis will spread.

Futures dropped as much as 1.3 percent after European finance ministers balked at putting up more public money for Greece, calling on holders of Greek debt to provide greater relief. The International Monetary Fund cut its forecast for the global economy as Europe slips into a recession and growth cools in China and India.

Crude oil for March delivery fell to $98.25 a barrel on the New York Mercantile Exchange. Prices are up 13 percent from a year earlier.

Brent oil for March settlement dropped 51 cents, or 0.5 percent, to $110.07 a barrel on the London-based ICE Futures Europe exchange.