Brent oil fell as Cypriot lawmakers prepared to decide whether to proceed with a bank levy amid concern that Europe’s debt crisis will worsen. Brent’s premium to West Texas Intermediate oil shrank to less than $15 a barrel.

The European benchmark dropped as much as 1.1 percent, trimming the spread to WTI, the grade traded in New York, to the narrowest level since January. The vote scheduled for later today will determine how to share the burden of raising 5.8 billion euros ($7.5 billion) from bank depositors to unlock emergency loans. A government report tomorrow may show U.S. crude supplies climbed to a nine-month high last week.

Finance chiefs from the 17 euro countries kept pressure on Cyprus as they signaled flexibility in applying the tax announced three days ago. The levy sparked outrage in the island nation and concern among investors about setting a precedent by breaking a taboo against raiding bank accounts.

Brent oil for May settlement declined $1.17, or 1.1 percent, to $108.34 a barrel on the London-based ICE Futures Europe exchange.

WTI for April delivery, which expires tomorrow, dropped to $93.11 a barrel on the New York Mercantile Exchange. 

Change % Change Last

GOLD 1,604.60 12.00 0.75%

OIL 93.74 0.29 0.31%