Oil declines on sentiment in Europe and cautious Chinese consumption

Meanwhile, potential risks such as reduced Russian flows through Ukraine or a surge in European gas demand could lead to a price increase

In another sign of short-term cooling, key timespreads have softened in recent days. Premiums of gasoline over crude fell to the lowest in almost a month. Picture: Danny Lawson/PA

Oil suffered its biggest intraday decline in three weeks as concerns about the Chinese economy and softer equity trading in Europe weighed.

West Texas Intermediate lost 1.9% to fall toward $80. European equity markets were trading lower, and the dollar edged higher for a second day of gains, with both acting as headwinds for crude.