NEW YORK (AP) - To discern the direction of oil prices, look to Europe.
Oil prices wavered near $91 a barrel Monday as concerns about the Greek debt crisis waned. The market is waiting to see if Greece receives a new round of international aid.
Benchmark oil for August delivery lost 48 cents to $90.69 in midday trading on the New York Mercantile Exchange.
Oil dipped below $90 earlier on fears that the Greek debt crisis would not be resolved. Also, the Commerce Department said Monday that U.S. consumer spending was unchanged in May, the worst result since September 2009. When adjusted for inflation, spending dropped slightly.
But oil prices recovered after reports surfaced that French banks had agreed to accept slower repayment of Greece's debt, relieving some pressure on the country.
"We're going to see a lot of nervous trading over Greece until we see a resolution," said Phil Flynn, an oil analyst at PFG Best.
Greek lawmakers will vote on a $39.8 billion austerity plan Wednesday. German Finance Minister Wolfgang Schaeuble warned Sunday that Greece will not receive its next tranche of international aid unless the measure passes.
Flynn said while the consumer spending report did show weakness in the U.S. economy, traders were not surprised by the report.
"More of the focus is on Europe than it is on the U.S. right now," he said.
In London, Brent crude for August delivery fell 8 cents to $105.04 a barrel on the ICE Futures exchange.
Crude fell sharply last week after the International Energy Agency said it will make 60 million barrels available over a 30-day period, half of which will come from the U.S. Strategic Petroleum Reserve.