Oil prices retreat on Europe's debt problems

The eurozone region continues to wrestle with a mountain of debt, and the only cure at hand appears to be a wave of severe spending cuts and pleas for more international aid. European Union leaders have hammered out a new plan for more central financial control and requirements for balanced budgets, but experts say those measures will do little to reduce current debts.That plan was a real bust, independent oil analyst and trader Stephen Schork said. Theres talk of real weakness now.Spending cuts typically lead to declines in energy consumption, and it also means that Europe will have less interest in imports of manufactured goods from other countries like China and the US The eurozone is expected to be headed for a recession already, and investors remain concerned that widespread bank failures could follow.Benchmark crude fell 73 cents to $93.14 per barrel in midday trading New York. Prices fell as low as $93.08 earlier in the day the lowest since Nov. 4.Brent crude, which is used to price foreign oil thats imported by many US refineries, fell 40 cents to $103.20 a barrel in London.The Labor Department reported Friday that consumer prices stayed flat in November, evidence that inflation is under control. Lower energy costs helped keep prices down overall.