By Mark Shenk March 9 (Bloomberg) -- Crude oil declined as equities slipped on speculation that the global economic recovery is slowing and the dollar gained against the euro. Oil slipped as much as 2.1 percent after companies reported earnings that missed analyst estimates, sending stocks lower. The U.S. currency climbed as the Greek financial crisis bolstered concern that European governments will default on debts. Prices also dropped on forecasts that U.S. oil supplies increased last week. “Economic concerns are hitting the oil market,” said Tom Bentz, a broker at BNP Paribas Commodity Futures Inc. in New York. “Worries about sovereign debt in Europe are seeping into the market and giving the dollar a boost.” Crude oil for April delivery fell $1.28, or 1.6 percent, to $80.59 a barrel at 9:11 a.m. on the New York Mercantile Exchange. Yesterday, the contract rose 37 cents to $81.87, the highest settlement since Jan. 11. The MSCI World Index of 23 developed nations’ stocks fell 0.4 percent at 8:56 a.m. in New York. European Aeronautic, Defence & Space Co., owner of planemaker Airbus SAS, posted a wider-than-expected annual loss and scrapped its dividend for the first time in its 10-year history. Copper producer Antofagasta Plc’s full-year profit plunged 61 percent. The greenback traded at $1.3547 per euro, up 0.6 percent from $1.3634 yesterday. It was the first increase in three days. ‘Healthy’ Skepticism “There’s a healthy amount of skepticism about both the global economic situation and sovereign debt problems in Europe,” said John Kilduff, a partner at Round Earth Capital, a New York-based hedge fund that focuses on food and energy commodities. “This is leading to the revival of the dollar as a safe haven, which is hitting oil.” Oil, equities and the dollar have rebounded from a year ago, when the Standard & Poor’s 500 Index fell to its lowest level since the collapse of Lehman Brothers Holdings Inc. Oil is up 71 percent, and the S&P Index has risen 68 percent since March 9 last year. Brent crude oil for April delivery dropped $1.42, or 1.8 percent, to $79.05 a barrel on the London-based ICE Futures Europe exchange. An Energy Department report tomorrow will probably show that U.S. inventories of crude oil rose 2 million barrels, according to the median of 14 analyst responses in a Bloomberg News survey. The department is scheduled to release its Weekly Petroleum Status Report at 10:30 a.m. in Washington. To contact the reporters on this story: Mark Shenk in New York at mshenk1@bloomberg.net

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